France Weighs 31.4% Tax on Regulated Stablecoin Swaps

French lawmakers are considering a budget measure to tax swaps from cryptocurrencies into European Union-regulated stablecoins at the country’s 31.4% capital gains rate starting Jan. 1, 2027, according to CoinDesk.

The measure was adopted as an amendment by the National Assembly’s finance committee on Oct. 7 as part of France’s 2027 budget debates. In France, exchanging one cryptocurrency for another generally does not trigger capital gains tax, as the 31.4% flat levy currently applies only when investors cash out into fiat or spend holdings. Under the proposal, converting assets like bitcoin into electronic money tokens regulated under the EU’s Markets in Crypto-Assets (MiCA) framework would be treated as a taxable event.

Industry Warnings and Additional Measures

Francois Volpoet, Chainalysis' CEO for France, warned that taxing MiCA-compliant stablecoins could undermine efforts to keep crypto activity within the regulated sector.

"Do we want more taxpayers to declare their assets, or a higher tax rate applied to a base that is increasingly evaded?" Volpoet told CoinDesk, adding that regulated stablecoins are easier for authorities to monitor than decentralized finance protocols or unhosted wallets.

Lawmakers backed several other crypto amendments during committee reviews. An Oct. 9 measure would require taxpayers to declare self-hosted crypto wallets holding at least €100,000 ($116,000), backed by fines of up to $11,600. Lawmakers also proposed extending France’s exit tax to crypto portfolios worth roughly $900,000, while a separate Oct. 7 amendment would allow crypto capital losses to be carried forward for up to 10 years.

Legislative Path Ahead

None of the proposals have been enacted into law. The National Assembly's finance committee rejected the revenue section of the 2027 budget in a 31-3 vote, requiring the amendments to be resubmitted for debate before the full assembly. Lawmakers face a Dec. 10 deadline to pass the budget, with a vote on the revenue portion scheduled for Oct. 20.

Key facts

• Proposed 31.4% capital gains tax would apply to swaps into MiCA-regulated stablecoins starting Jan. 1, 2027.
• Additional amendments mandate reporting of self-hosted wallets holding at least €100,000 ($116,000) under threat of fines up to $11,600.
• Lawmakers proposed extending the exit tax to crypto holdings worth roughly $900,000 and allowing 10-year loss carryforwards.
• The finance committee rejected the revenue section 31-3, sending the proposals to the full National Assembly for debate.