France’s Proposed 31.4% Crypto Tax on Stablecoin Swaps Raises Concerns

• France’s amendment would apply the existing 31.4% flat tax to gains from certain crypto-to-stablecoin conversions.
• The proposal targets qualifying electronic money tokens under MiCA and could take effect on January 1, 2027, if enacted.
• Chainalysis’ France CEO warned the change could push some trading activity offshore.
• The amendment is not law and must pass further parliamentary stages.

France is considering a change to its cryptocurrency tax rules that could make certain stablecoin conversions taxable from January 1, 2027. The proposal would apply the country’s existing 31.4% flat tax on eligible crypto capital gains when investors exchange cryptocurrencies for certain euro- or dollar-pegged stablecoins.

The measure is included in amendment I-CF1826, introduced by French lawmaker Nicolas Sansu and 16 other deputies during discussions on the 2027 budget. France’s National Assembly Finance Committee adopted the amendment on October 7, but it has not become law.

Under current rules, investors can generally exchange one cryptocurrency for another without immediately paying capital gains tax, provided the transaction meets the applicable conditions. The proposed amendment would remove that tax deferral for conversions into electronic money tokens covered by the European Union’s Markets in Crypto-Assets Regulation (MiCA).

Industry Warns of Potential Market Impact

If approved, the measure could mean investors owe tax on qualifying gains when converting assets such as Bitcoin into eligible fiat-backed stablecoins, even if they do not withdraw the proceeds into euros. The proposal also sets out changes to acquisition-cost calculations, including using a weighted average for crypto-assets of the same type purchased at different prices.

The proposal has drawn criticism from industry representatives. In a report published on October 14, CoinDesk quoted François Volpoet, Chainalysis’ France CEO, warning that the tax could push some traders toward offshore or less-monitored channels. This is an industry concern, not evidence that such a shift has already occurred.

The amendment’s supporters argue that stablecoin conversions can allow investors to lock in gains while remaining within crypto markets, avoiding the tax that would generally apply when selling assets for traditional currency. They want those conversions treated as taxable disposals.

The proposal faces further legislative hurdles. The Finance Committee rejected the 2027 budget’s revenue section on October 9, meaning the crypto-tax amendment must be brought forward again during parliamentary consideration. Debate on the budget began in the National Assembly on October 13.

For now, the 31.4% rate remains part of the existing tax regime, while the proposed extension to qualifying stablecoin conversions remains subject to approval. The proposed January 1, 2027, start date would apply only if the measure becomes law.

share