France Moves to Tax Crypto-to-Stablecoin Swaps From 2027

France’s National Assembly has narrowly backed a proposal to tax cryptocurrency gains when investors convert their holdings into certain euro-pegged or dollar-pegged stablecoins, with the measure set to apply from January 1, 2027, if it becomes law.

The amendment to France’s 2027 budget passed on October 16 by a 38-37 vote, with 25 lawmakers abstaining. Only 100 deputies voted. The proposal covers electronic money tokens defined under the EU’s MiCA, which includes stablecoins pegged to a single official currency.

Under current French rules, individuals can generally defer tax on crypto gains when swapping one cryptocurrency for another, provided the transaction does not involve cashing out into fiat currency or paying for goods and services. The amendment would treat a conversion into a qualifying stablecoin as a taxable sale. Gains would be calculated using the value of the stablecoins received and the acquisition cost of the crypto sold.

Supporters of the amendment argue that investors should not be able to defer tax simply by moving gains into stablecoins, which can also be used to buy other tokens or pay for crypto services. The government opposed the proposal, raising concerns about how to define stablecoins in law and track movements within crypto portfolios.

The proposed tax would use France’s existing flat capital gains tax rate of 31.4%. However, the amendment remains part of the broader 2027 budget process and must pass further legislative stages before it takes effect.