France Moves Closer to Taxing Crypto to Stablecoin Swaps at 31.4%

France’s National Assembly approved amendment I-3898 to the 2027 budget on Oct. 16, voting 38 to 37 with 25 abstentions. The measure would tax gains when investors swap cryptocurrency for stablecoins, bringing those trades under the country’s 31.4% capital gains levy. It builds on a proposal already cleared by the finance committee and would apply from Jan. 1, 2027, though it still faces the remaining budget stages and could be changed or dropped before becoming law.

How the Crypto Tax Rules Would Change

Under current French rules, swaps between cryptocurrencies with no extra cash payment generally enjoy tax deferral. Private investors face a default 31.4% rate on taxable gains, though they can choose the progressive income tax scale instead. The amendment would end that deferral when investors receive e-money tokens as defined by the EU’s MiCA framework, so gains could be taxed on a move into qualifying stablecoins even without cashing out to a bank account. The text would also replace the portfolio-wide gains calculation with one based on the acquisition cost of assets sold, using a weighted average for units bought at different prices.

Concerns Over Trading Impact

Public Accounts Minister David Amiel questioned how it would work in practice and asked for the amendment to be withdrawn, saying stablecoins must first be defined and reallocations within a portfolio must be traceable. Finance committee rapporteur Philippe Juvin said he preferred keeping the deferral given crypto’s volatility.