France Moves to Tax Stablecoin Swaps Under Capital Gains Rules

French lawmakers have narrowly advanced a measure that would tax investors when they convert cryptocurrencies into qualifying stablecoins, potentially ending a common tax deferral for such swaps. The change, proposed as amendment I-3898 to the 2027 budget, passed the National Assembly by a razor-thin margin and now proceeds through the remaining parliamentary stages.

The amendment targets transactions effective from Jan. 1, 2027, although it could still be modified or removed before becoming law. Under current French rules, exchanges between crypto assets without any additional fiat payment often qualify for tax deferral; the proposed text would erase that deferral when the recipient is an e-money token as defined under the EU’s MiCA framework.

Key changes and practical impact

Tax treatment: Investors could be liable for capital gains tax at the standard rate of 31.4% on gains realized when moving into qualifying stablecoins, even if no fiat currency is withdrawn to a bank account. Alternatively, taxpayers may still opt for the progressive income-tax scale where applicable.

Calculation method: The amendment would replace France’s current portfolio-wide capital-gains calculation with a method based on the acquisition cost of the specific assets sold. For multiple purchases of the same cryptocurrency at different prices, a weighted average acquisition cost would be used.

Concerns raised by stakeholders

Opponents warn the change could reshape trading behavior. Some industry voices suggest it may push activity toward decentralized finance platforms, peer-to-peer transactions, and offshore exchanges that fall outside typical international tax-reporting frameworks.

Implementation questions: Public Accounts Minister David Amiel urged caution, asking for the amendment’s withdrawal until authorities can clearly define stablecoins and demonstrate the ability to monitor reallocations within investors’ portfolios. The finance committee’s rapporteur general, Philippe Juvin, also expressed support for retaining the deferral given cryptocurrency volatility.

Next steps

The amendment now moves through further parliamentary scrutiny and could be amended or struck out before final adoption. If enacted as written, the measure would materially change how many crypto-to-stablecoin swaps are taxed in France, with implications for domestic trading and cross-border market behavior.