A proposal in France to tax gains from converting crypto assets such as Bitcoin into certain stablecoins could leave investors facing a tax bill before they cash out.
According to CoinDesk, the change, proposed as part of the 2027 budget, targets swaps into stablecoins classified as e-money tokens under the EU’s MiCA regulation. Under current practice in France, crypto-to-crypto swaps generally do not trigger capital gains tax; gains are taxed when assets are converted to cash or spent.
If adopted, converting to certain stablecoins would also become a taxable transaction starting January 1, 2027. The report puts France’s flat rate on crypto gains at 31.4 percent.
Different treatment for USDT, DAI, and PAXG
François Volpoet, Chainalysis’s CEO for France, said the proposal targets certain MiCA-compliant stablecoins while excluding tokens such as USDT, DAI, and PAXG. According to Volpoet, this distinction could push investors away from regulated instruments.
Volpoet warned that transactions could shift to DeFi platforms, peer-to-peer channels, and exchanges not covered by international tax-reporting arrangements. He said such a shift could make it harder for authorities to monitor transactions.
Reporting for personal wallets and a proposal to offset losses
Stablecoin swaps are not the only issue under consideration in the budget discussions. A separate amendment backed by the finance committee on October 9 would require French taxpayers to report crypto worth at least 100,000 euros held in self-custodied wallets. Failure to report could result in a fine of up to about $11,600.
Volpoet said that if data collected through the reporting of large crypto holdings were leaked, investors and their families could face the risk of physical attacks, and called for access to this information to be strictly controlled.
Other proposals include bringing crypto assets worth about $900,000 within the scope of the exit tax and allowing crypto losses to be carried forward and offset for up to 10 years.
Proposals have not yet become law
Although the stablecoin amendment was approved by the finance committee on October 7, the committee later rejected the budget’s revenue section by 31 votes to 3. As a result, the crypto measures must be reintroduced during National Assembly debates.
A vote on the revenue section is scheduled for October 20; lawmakers have until December 10 to approve the budget. None of the proposals has yet taken effect.
Not investment advice.