French lawmakers have voted to impose a 31.4% flat tax on conversions from cryptocurrency into stablecoins, ending a tax-deferred treatment that has applied to on-chain rebalancing. Under the
French lawmakers have voted to impose a 31.4% flat tax on conversions from cryptocurrency into stablecoins, ending a tax-deferred treatment that has applied to on-chain rebalancing. Under the measure, swapping digital assets into tokens such as $USDC, $USDT and $EURC would trigger a taxable event, regardless of whether proceeds stay in self-custody wallets.
France's National Assembly passed Amendment I-3898, part of the 2027 budget bill, on October 16 by a narrow vote of 38 in favor, 37 against and 25 abstentions.The amendment, led by Nicolas Sansu, would impose a 31.4% capital gains tax on such transactions starting in 2027.
Under current French rules, tax on crypto-to-crypto exchanges is generally deferred, and the bill typically comes due only when a holder converts to fiat currency or uses crypto to make a purchase.The amendment would remove that option for single-currency stablecoins, so moving into one would be treated much like cashing out from the tax authority's perspective.
The rate is not new. Gains would be hit with France's existing flat tax rate of 31.4%, made up of 12.8% in income tax and 18.6% in social contributions.The measure targets only electronic money tokens regulated under the EU's MiCA framework.The tax applies to qualifying gains, not the entire amount converted.
The vote is a first step. The measure still has to pass additional parliamentary stages, including a solemn vote on the budget's revenue section.The Defiant reports that the budget vote has been moved to November 3, while a full Assembly vote has been scheduled for November 17, 2026.The rule also faces a Senate vote before it could take effect in January 2027.
The thin margin leaves the outcome open. With the first round decided 38 to 37, attendance alone could prove decisive.
Industry analysts have flagged the risk of displacement. Chainalysis estimates that France reported $9.4 billion in taxable onchain crypto activity in 2025, including $2.5 billion in gains. CoinDesk reported that the firm warned the proposal could drive crypto activity offshore.
For French holders, the practical effect is on strategy. Rotating into a pegged token to lock in gains would stop being tax-neutral, and every rotation into a single-currency stablecoin could carry a 31.4% bill on any gain.
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