France wants to tax your $BTC profits even if you never cash out to euros.

A French parliamentary committee backed amendment I-CF1826, which would make swaps from cryptocurrencies like $BTC and $ETH into qualifying MiCA-regulated stablecoins taxable from January 1, 2027.

That means moving profits into a stablecoin could trigger capital gains tax without withdrawing money to a bank.

But here's the important update: This is NOT law yet. The committee subsequently rejected the budget's revenue section, meaning the amendment must be reintroduced and approved during parliamentary proceedings.

Other proposals include a 10-year crypto loss carryforward and an exit tax targeting certain crypto holdings above €800,000.

The bigger question is whether taxing stablecoin conversions would discourage trading and liquidity in France.

Should swapping crypto into stablecoins count as cashing out?