Young people across France have taken to the streets to protest deteriorating schools, rising living costs, and underfunded public services. Some demonstrations have turned violent, fueling w
Young people across France have taken to the streets to protest deteriorating schools, rising living costs, and underfunded public services.
Some demonstrations have turned violent, fueling what has been described as the country’s worst riots in years.
Against this backdrop, France has proposed a new tax on crypto investors that could reach 31.4%.
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On Oct. 16, France's National Assembly adopted amendment I-3898 to the 2027 budget legislation with a 38-37 vote with 25 abstentions.
The proposal is to tax gains on crypto-to-stablecoin swaps at 31.4%, Jan. 1, 2027 onward.
Capital gains on private investments, including cryptocurrencies, are already taxed at the same rate in the country. But the existing rules offer a tax deferral on exchanges between cryptocurrencies.
The latest amendment proposes removing this tax deferral.
If it's signed into law, the 31.4% tax would also extend to crypto-to-stablecoin conversions.
Only 25% of crypto investors are tax-compliant, says crypto tax expert (2:11)Investors buy cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) to profit from their price swings.
Before trading, however, they typically need to fund their crypto accounts. One way is to convert euros into stablecoins, digital tokens designed to maintain a 1:1 peg to currencies such as the U.S. dollar or the euro.
In short, a crypto investor in France needs to pour digital euros into their wallet before they can buy Bitcoin or Ether.
Here is what the new amendment proposes.
Suppose a French investor buys $1,000 worth of Bitcoin and the value of their holding rises to $2,000 in a span of a year.
So if the investor swaps their Bitcoin for a euro stablecoin, it would invite a tax of $314 even if they don't withdraw the amount in euros.
As per a recent news report, France's national debt of €3.6 trillion accounts for 119% of the gross domestic product (GDP). The debt-to-GDP figure stood at 98% in 2019 before the COVID-19 pandemic.
The country's budget deficit in 2025 was €152.5 billion, which is 5.1% of its GDP. Notably, France levies some of the highest taxes of any country to support its sizeable welfare state.
The latest proposal is another addition to the same tax structure in France.
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