France’s tax proposal would tax Bitcoin-to-USDC swaps before investors cash out

France’s proposed crypto tax changes would make a move from Bitcoin or Ether into certain stablecoins a taxable disposal, even if the investor never withdraws cash.The National Assembly’s Finance Committee adopted amendment I-CF1826 on Oct. 7, adding that proposed exception to a broader overhaul of how private crypto gains are calculated. The provision would apply to disposals and exchanges from Jan. 1, 2027 if enacted.For an investor selling Bitcoin exposure into USDC, the consequence would be a change in the tax timing of a risk-reduction trade. A gain could become reportable while the proceeds remain in a crypto wallet or exchange account. But the proposal also changes the cost deducted from those proceeds, and gives older holdings a transition choice.Under French tax authority guidance, covered crypto-to-crypto exchanges without a cash balancing payment receive tax deferral. Converting into fiat or using crypto to obtain other goods or services can already be taxable under the private-disposal regime, subject to its applicable exemption.CF1826 would remove the exchange deferral when the investor receives e-money tokens as defined by the EU’s Markets in Crypto-Assets regulation,...