French Parliament Votes to End stablecoin tax deferral

Narrowly approved amendment would impose 31.4% capital gains levy on crypto-to-stablecoin swaps from 2027

By LineZotpaper

Published20 October 2026

Read Time2 min

The French National Assembly has narrowly approved a budget amendment that would remove the current tax deferral for cryptocurrency-to-stablecoin swaps, bringing such transactions under the country's 31.4% capital gains tax. The proposal, backed 38-37 with 25 abstentions, is part of the 2027 budget bill and requires further parliamentary approval.

The amendment (I-3898) would apply from Jan. 1, 2027 and targets stablecoins compliant with the European Union's Markets in Crypto-Assets (MiCA) framework. Under current French rules, exchanges between cryptocurrencies that involve no cash payment generally benefit from tax deferral. The change would treat moves into qualifying stablecoins as taxable events, even if the investor has not withdrawn the funds in fiat currency.

The proposal has drawn warnings from industry figures. Francois Volpoet, regional sales director for France at Chainalysis, told CoinDesk that the levy could drive investors toward decentralized finance platforms, peer-to-peer trades and offshore exchanges outside international tax-reporting arrangements.

Public Accounts Minister David Amiel questioned the amendment's practical implementation during the assembly debate, stating: "We first need to define stablecoins, then ensure our ability to monitor and trace reallocations within a portfolio of assets." The finance committee's rapporteur general, Philippe Juvin, said he preferred maintaining the deferral, citing crypto's volatility.

The amendment also replaces France's portfolio-wide capital-gains calculation method with one based on the acquisition cost of assets sold, using a weighted average for units of the same cryptocurrency bought at different prices.

The change remains subject to the budget's remaining parliamentary stages and could still be altered or removed before enactment.

Analysis

Why This Matters

French investors face a new tax hit on stablecoin transactions that were previously deferred, potentially eating into returns.
The move could shift trading activity to DeFi and unregulated platforms, undermining tax collection and market oversight.
It signals continued European regulatory tightening on cryptocurrency tax treatment post-MiCA.

Background

France currently defers capital gains tax on crypto-to-crypto exchanges that involve no cash payment. Stablecoin trades have benefited from this treatment. The European Union's MiCA regulation, now in effect, provides a framework for e-money tokens, which the French amendment targets. The 31.4% rate is France's flat levy on capital gains, though investors can opt for progressive income-tax rates. The budget amendment, passed by a razor-thin margin, is the latest effort by French lawmakers to ensure stablecoin gains do not escape taxation.

Key Perspectives

Traders and Investors: May face a 31.4% tax bill when swapping volatile crypto assets for stablecoins, even without cashing out. Critics argue this could reduce the appeal of using stablecoins as a safe haven during market downturns.
The French Government: Seeks to close a perceived tax loophole and capture revenue from gains realized within the crypto ecosystem. However, the Public Accounts Minister expressed concerns about the difficulty of defining and monitoring stablecoins.
DeFi Platforms and Offshore Exchanges: Stand to benefit if French traders move activity off-chain to avoid the tax, potentially reducing France's ability to enforce its tax rules.

What to Watch

The budget's progress through the Senate and final approval; the amendment could be modified or dropped.
Market reaction: volume shifts in French crypto trading and stablecoin usage.
Any guidance from the French tax authority on implementation and compliance.

Sources

France's parliament approves vote to hit stablecoin trades with 31% capital gains tax · CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data

Checked

12 claims in this story checked against 1 source: 9 supported.

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SupportedDavid Amiel said: “We first need to define stablecoins, then ensure our ability to monitor and trace reallocations within a portfolio of assets.”CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: ““We first need to define stablecoins, then ensure our ability to monitor and trace reallocations within a portfolio of assets,” he told lawmakers during the parliamentary debate.”
Partly supportedThe French Parliament voted to end stablecoin tax deferral.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The amendment would remove that deferral when investors receive e-money tokens as defined by the European Union’s Markets in Crypto-Assets (MiCA) framework.”
Partly supportedThe amendment was narrowly approved and would impose a 31.4% capital gains levy on crypto-to-stablecoin swaps from 2027.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Taxable gains on private investments face a default rate of 31.4%, although investors can opt for the progressive income-tax scale.”
Partly supportedThe National Assembly approved an amendment to remove the current tax deferral for crypto-to-stablecoin swaps.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The amendment would remove that deferral when investors receive e-money tokens as defined by the European Union’s Markets in Crypto-Assets (MiCA) framework.”
SupportedThe amendment was adopted by 38 votes to 37, with 25 abstentions.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The National Assembly adopted amendment I-3898 to the 2027 budget on Oct. 16 by 38 votes to 37, with 25 abstentions.”
SupportedAmendment I-3898 would apply from Jan. 1, 2027, to stablecoins compliant with the EU MiCA framework.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The proposed changes would apply to transactions from Jan. 1, 2027.”
SupportedUnder current French rules, exchanges between cryptocurrencies without an additional cash payment generally benefit from tax deferral.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Exchanges between crypto without an additional cash payment generally benefit from tax deferral under current French tax rules.”
SupportedInvestors could owe tax on gains from moves into qualifying stablecoins even without withdrawing the funds in fiat currency.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Investors could therefore owe tax on gains when moving into qualifying stablecoins, even without withdrawing the funds in fiat currency to a bank account.”
SupportedFrancois Volpoet told CoinDesk the levy could push investors toward DeFi, peer-to-peer transactions and offshore exchanges outside international tax-reporting arrangements.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Francois Volpoet, Chainalysis’ regional sales director for France, told CoinDesk last week that it could push investors toward decentralized finance platforms, peer-to-peer transactions and offshore exchanges outside international tax-reporting arrangements.”
SupportedPhilippe Juvin favored keeping the tax deferral because of crypto’s volatility.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The finance committee’s rapporteur general, Philippe Juvin, said he favored keeping the deferral given crypto’s volatility.”
SupportedThe amendment would replace the portfolio-wide capital-gains calculation with one based on acquisition cost, using a weighted average for units of the same cryptocurrency bought at different prices.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The text would also replace France’s portfolio-wide capital-gains calculation with one based on the acquisition cost of the assets sold, using a weighted average for units of the same cryptocurrency bought at different prices.”
SupportedThe amendment remains subject to the budget’s remaining parliamentary stages and could still be altered or removed before enactment.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “They remain subject to the budget’s remaining parliamentary stages and could still be amended or removed before becoming law.”