France’s National Assembly has approved a proposal that would subject gains from certain cryptocurrency-to-stablecoin swaps to a 31.4% tax starting January 1, 2027, potentially ending a tax deferral that currently applies to some crypto transactions.
The measure forms part of France’s proposed 2027 budget and would make conversions from crypto assets into certain regulated stablecoins taxable events, even when investors do not convert their holdings into euros.
However, the proposal is not yet law, as the wider budget remains under parliamentary consideration.
France Targets Crypto-to-Stablecoin Conversions
Under France’s existing tax framework, individuals can generally defer capital gains tax when exchanging one cryptocurrency for another without receiving additional cash. The proposed amendment would remove that deferral for certain exchanges into electronic money tokens, a category that includes qualifying euro- and dollar-pegged stablecoins under the European Union’s Markets in Crypto-Assets Regulation (MiCA).
If enacted, the change would mean that investors exchanging Bitcoin or another cryptocurrency for a qualifying stablecoin could trigger a taxable event, even if they keep the proceeds within the crypto ecosystem.
The proposal was adopted by the National Assembly in a narrow vote on October 16, 2026, with 38 lawmakers voting in favour, 37 against and 25 abstaining.
How the 31.4% Tax Would Work
The proposed measure would apply France’s existing 31.4% flat tax rate on relevant investment gains rather than introduce a separate tax rate specifically for stablecoins.
Importantly, the tax would apply to the taxable profit, not the entire value of the transaction.
For example, if an investor acquired crypto assets for €10,000 and later exchanged them for qualifying stablecoins worth €15,000, the realised gain would be €5,000 before applicable adjustments.
At a 31.4% rate, the tax on that gain would amount to €1,570, assuming the full gain is taxable under the applicable rules.
This could create a tax liability for investors who move into stablecoins to preserve the value of their portfolios without withdrawing money into a traditional bank account.
Why France Is Making the Change
Supporters of the proposal argue that converting crypto assets into fiat-pegged stablecoins can serve a similar investment purpose to converting them into conventional currency.
They contend that allowing investors to defer taxation through stablecoin conversions creates a gap in the tax system, particularly because stablecoins can be used to purchase other cryptocurrencies and pay for certain goods and services.
The amendment seeks to close that gap by treating qualifying conversions as taxable disposals from January 2027.
What It Means for Crypto Investors
If the proposal becomes law, investors operating under France’s tax rules may need to reconsider how they manage profitable crypto positions.
Strategies that involve moving from volatile assets into stablecoins could trigger tax liabilities earlier than investors currently expect.
The measure could also increase the importance of accurate transaction records, acquisition costs and portfolio valuations when calculating taxable gains.
However, the proposal does not cover every stablecoin or every crypto transaction indiscriminately. Its scope focuses on qualifying electronic money tokens defined under MiCA, and the final treatment will depend on the legislation ultimately enacted.
What Happens Next?
The amendment has received approval in the National Assembly, but the wider 2027 budget process remains ongoing. Further legislative steps are required before the proposed rules can take effect.
If enacted, the measure would apply to qualifying transactions carried out from January 1, 2027.
For now, the proposal signals France’s intention to bring certain stablecoin conversions within its existing capital gains tax framework, potentially changing how crypto investors manage profits without exiting the digital asset market entirely.
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