France’s proposed tax on cryptocurrency-to-stablecoin conversions faces another parliamentary test on October 20, 2026, as the National Assembly prepares to vote on the revenue section of the country’s 2027 budget.
The measure advanced on October 16, when lawmakers approved amendment I-3898 by 38 votes to 37, with 25 abstentions.
Introduced by Nicolas Sansu and fellow lawmakers, the amendment would make certain cryptocurrency conversions into stablecoins taxable events, even when investors do not withdraw funds into conventional bank accounts. The change would apply to transactions conducted from January 1, 2027, provided the legislation receives final approval.
However, the October 16 vote did not establish a new tax. The amendment remains part of the draft Finance Bill, which must complete additional legislative stages. The Assembly scheduled a formal vote on the budget’s revenue section for October 20, following questions to the government. No verified result from that vote was available at the time of publication.
Stablecoin Conversions Could Trigger Capital Gains Tax
Under France’s existing framework, qualifying cryptocurrency-to-cryptocurrency exchanges without cash payments generally benefit from deferred taxation.
For example, an investor exchanging Bitcoin for another cryptocurrency would not ordinarily recognize a taxable gain until a subsequent disposal involving fiat currency, goods or services. Amendment I-3898 would remove that deferral when the investor receives an electronic-money token classified under the European Union’s Markets in Crypto-Assets Regulation.
The category covers tokens referencing a single official currency, potentially including euro- and dollar-denominated stablecoins such as EURC and USDC. The measure would not automatically apply to every asset marketed as a stablecoin. For investors, the distinction is significant because converting volatile cryptocurrencies into qualifying stablecoins could create an immediate tax obligation without generating proceeds in a conventional bank account.
An investor who purchased Bitcoin for €20,000 and subsequently exchanged it for €30,000 in qualifying stablecoins could recognize a €10,000 capital gain. The proposal would also replace France’s existing portfolio-wide calculation methodology with a weighted-average acquisition cost for each cryptocurrency.
Transitional provisions would address holdings acquired before January 2027, including an election concerning historical acquisition costs. The amendment does not establish a separate transaction tax on the full value of stablecoin swaps. It changes when applicable capital gains become taxable.
October 20 Vote Is Not Final Legislative Approval
The proposal’s narrow October 16 victory demonstrates that its parliamentary support remains uncertain. The government opposed the amendment during debate, while its supporters argued that stablecoin conversions should receive treatment comparable to exchanges into conventional currencies.
The measure previously advanced through the Assembly’s Finance Committee, but the committee subsequently rejected the broader revenue section of the budget. Lawmakers therefore reintroduced the proposal during plenary consideration. If the October 20 revenue-section vote succeeds, the provision could remain in the Assembly’s budget text, subject to subsequent parliamentary consideration.
If the section is rejected, the amendment’s immediate legislative path would become uncertain. Either outcome would fall short of final enactment. The full budget remains subject to further Assembly proceedings, Senate examination and potential revisions before publication as law. For French cryptocurrency investors, the proposal could substantially change tax planning around stablecoin conversions.
For exchanges and stablecoin providers, it could create additional transaction-reporting and customer-accounting requirements. Nevertheless, existing tax treatment remains applicable until legislation formally changes. The decisive issue is whether lawmakers retain the amendment through the remaining budget process, rather than whether its October 16 approval alone establishes a new tax obligation.