French lawmakers are considering taxing swaps from cryptocurrencies into stablecoins regulated under the European Union's MiCA framework at the country's 31.4% capital gains rate beginning January 1, 2027. According to reports from CoinDesk, an amendment adopted by the National Assembly's finance committee on October 7 would make it a taxable event when investors exchange cryptocurrencies such as bitcoin for stablecoins classified as electronic money tokens under the EU's MiCA regulation, which came into full force on July 1. The proposal is part of France's 2027 budget, with lawmakers having until December 10 to pass the legislation. As reported by CoinDesk, swapping one crypto for another generally does not trigger capital gains tax in France, making this a significant expansion of the country's crypto taxation regime.
Chainalysis CEO for France Francois Volpoet warned the proposed 31.4% tax on regulated stablecoins could push traders toward unmonitored offshore channels. As reported by CoinDesk, Volpoet questioned whether authorities want more taxpayers to declare their assets or a higher tax rate applied to a base that is increasingly evaded. He noted that authorities can more easily monitor regulated stablecoin transactions than trades made through decentralized finance platforms or self-hosted wallets. The distinction is critical because the proposal targets a category of stablecoins subject to EU rules, potentially incentivizing traders to use alternatives outside that category. Volpoet warned that the measure could undermine efforts to bring more crypto transactions into the regulated financial system.
According to CoinDesk reports, another amendment backed by the finance committee on October 9 would require French taxpayers to declare self-hosted crypto wallets holding at least €100,000 in assets, with fines of up to €11,600 for failing to comply. Lawmakers also backed a proposal to extend France's exit tax to crypto holdings worth roughly $900,000, bringing unrealized crypto gains under the tax rules already applied to wealthy shareholders who move abroad. Additionally, a separate amendment would allow investors to carry forward crypto losses for up to 10 years, bringing their tax treatment closer to that of stocks.
Volpoet raised concerns about the security of self-hosted wallet disclosures, pointing to a rise in physical attacks targeting crypto holders in France. As reported by CoinDesk, as of July, Europe recorded 39 of the 52 global incidents, with France alone responsible for 33, or 63.5% of the worldwide total. The finance committee subsequently rejected the revenue section of the government's 2027 budget by 31 votes to 3, meaning the crypto amendments must be submitted again for debate in the full National Assembly. None of the measures have yet become law.
