Key Insights France’s crypto tax proposal targets gains from qualifying stablecoin conversions. The existing 31.4% flat rate applies to profits, not entire swaps. Parliamentary approval remai
France’s proposed crypto tax expansion moved forward after lawmakers backed a measure targeting conversions into certain stablecoins. The National Assembly’s Finance Committee approved the amendment on Oct. 7 during its review of the 2027 budget. Supporters argued that such exchanges currently let investors defer tax on gains.
The proposal would affect how French investors manage profits without withdrawing money into bank accounts. Investors could owe tax while retaining proceeds in tokens, without converting their holdings directly into euros. However, committee approval did not establish a new tax obligation, and the broader budget faces parliamentary scrutiny.
National Assembly records showed that lawmakers adopted Amendment I-CF1826, introduced by Nicolas Sansu and fellow left-wing legislators. It sought amendments to Article 150 VH bis, governing gains from private digital-asset disposals. The provision specifically addresses exchanges that deliver electronic-money tokens to the seller.
France Proposes Tax on Stablecoin Swaps. Source: X
Sansu and his co-sponsors argued in their explanatory statement that stablecoin conversions benefit from unjustified tax deferral. They said investors could move gains into fiat-linked tokens while avoiding the treatment applied to conventional currency sales. Their stated aim was to apply existing taxation more consistently, rather than establish a separate rate.
The committee’s overall decision then complicated the proposal’s path. National Assembly records confirmed that committee members rejected the budget’s revenue section on Oct. 9. Their earlier approval of individual amendments therefore did not amount to parliamentary passage.
France’s Constitution also draws a distinction between committee amendments and budget legislation. Under Article 42, the first plenary examination of a finance bill uses the government’s original text. Lawmakers consequently have to secure support during the Assembly’s floor proceedings.
France’s tax administration currently allows deferral for digital-asset exchanges without a cash payment. Selling crypto for conventional currency, however, generally triggers taxation of realized gains for private investors. The distinction allows qualifying crypto-to-crypto transfers to avoid an immediate tax charge.
The tax authority lists a 31.4% flat levy on qualifying private gains. That combines 12.8% income tax with 18.6% social contributions. Eligible taxpayers can instead elect the progressive income-tax schedule under the administration’s published rules.
The amendment would remove that deferral for electronic-money tokens under the European Union’s crypto regulations. European legislation describes these tokens as crypto-assets, referencing the value of one official currency. This classification does not automatically cover every token marketed as a stablecoin.
For example, a €10,000 crypto purchase exchanged for €15,000 in qualifying tokens would generate a €5,000 gain. At the published flat rate, that implies €1,570 before relevant adjustments or exemptions. The tax would concern the gain, not the entire value exchanged.
The proposal goes beyond treating some stablecoin transactions as taxable sales. Its text would also replace France’s existing portfolio-wide acquisition-cost formula with an asset-specific method. Investors holding units of the same crypto acquired at different prices would use a weighted-average acquisition cost.
For holdings purchased before implementation, the amendment provides alternative ways to establish acquisition values. Taxpayers could document the original costs or allocate the aggregate cost of their existing portfolio across assets. The selection would become irrevocable when they first report a taxable disposal under the new system.
That creates an administrative consideration beyond the immediate tax bill. Investors making frequent conversions would have to distinguish taxable stablecoin exchanges from other deferred crypto transfers. Reliable acquisition records would matter when calculating gains across separate token holdings.
Still, the proposal does not demonstrate how traders or exchanges would respond. It provides no verified estimate of additional receipts from taxing these conversions. Claims of capital flight, reduced liquidity or widespread trading losses would therefore remain unsupported without separate evidence.
The National Assembly scheduled public consideration of the budget’s revenue provisions beginning Oct. 13. Sansu subsequently filed a corresponding amendment for plenary consideration, keeping the stablecoin proposal within the legislative debate. Its fate remained unresolved in the parliamentary material available on Oct. 14.
If lawmakers approve the measure through the budget process, it would take effect Jan. 1, 2027. Until then, France’s published deferral rules continue to govern eligible token exchanges. The next milestone is the Assembly’s decision on the floor amendment and subsequent budget proceedings.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, financial, or investment advice.
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