France’s National Assembly has advanced legislation that would make cryptocurrency-to-stablecoin conversions subject to the country’s existing 31.4% flat capital-gains tax, potentially changing how investors manage digital asset portfolios from January 2027. Lawmakers approved amendment I-3898 to the 2027 Finance Bill on October 16, 2026, by 38 votes to 37, with 25 abstentions. The proposal, introduced by lawmaker Nicolas Sansu, would remove the tax deferral currently available when investors exchange cryptocurrencies for certain stablecoins without converting their holdings into conventional currency.
The change would apply to qualifying transactions conducted from January 1, 2027, if the legislation completes the remaining parliamentary process. The amendment’s narrow approval represents an important legislative development, but it does not constitute final enactment. The broader budget remains subject to further consideration, including examination by the Senate. The proposal has also attracted opposition from government representatives and industry participants concerned about its practical implementation.
Stablecoin Swaps Could Become Immediate Taxable Events
Under France’s existing cryptocurrency tax framework, qualifying exchanges between digital assets generally do not trigger immediate capital-gains taxation when no additional cash payment is involved. Investors typically recognize taxable gains when converting cryptocurrencies into fiat currency or using them to purchase goods and services. Amendment I-3898 would remove that exemption when the asset received qualifies as an electronic-money token under the European Union’s Markets in Crypto-Assets Regulation. This category generally covers tokens referencing the value of a single official currency, potentially including qualifying euro- and dollar-denominated stablecoins. Consequently, investors converting appreciated Bitcoin or Ether holdings into covered stablecoins could incur tax obligations without transferring money into traditional bank accounts.
For example, an investor who purchased cryptocurrency for €20,000 and later exchanged it for €30,000 in qualifying stablecoins could recognize a €10,000 taxable gain. At the existing 31.4% flat rate, the illustrative liability would amount to €3,140, assuming the gain is fully taxable and no adjustments apply. The 31.4% rate comprises a 12.8% income-tax component and 18.6% in social charges. The amendment would also replace France’s portfolio-wide cryptocurrency acquisition-cost calculation with a weighted-average method applied separately to individual assets. This could significantly affect recordkeeping requirements for investors conducting frequent transactions across multiple cryptocurrencies.
Government Opposition Raises Questions Over Final Approval
The proposal passed despite opposition from Public Accounts Minister David Amiel, who questioned whether authorities could reliably identify qualifying stablecoins and monitor transactions across cryptocurrency portfolios. Finance Committee rapporteur Philippe Juvin also supported retaining existing tax deferral arrangements, citing the volatility of digital assets. Industry representatives have warned that taxing stablecoin conversions could encourage investors to shift activity toward decentralized exchanges, peer-to-peer platforms or offshore providers. However, such migration remains a potential consequence rather than an established outcome. The amendment also sits alongside separate parliamentary proposals addressing cryptocurrency loss deductions, self-custodial wallet reporting and taxation when investors relocate abroad.
Those measures should not be confused with the stablecoin provision, which specifically concerns the recognition and calculation of taxable cryptocurrency gains. The October 16 vote involved only 100 participating lawmakers, underlining the limited margin supporting the amendment. Further budget negotiations could modify, remove or retain the measure before the legislation receives final approval. For cryptocurrency investors in France, the central implication is that moving into qualifying stablecoins could cease to provide a tax-deferred alternative to selling digital assets for euros. Nevertheless, the current tax treatment remains unchanged until the proposed legislation is formally enacted.