France Advances 31.4% Crypto-to-Stablecoin Tax Proposal
France’s National Assembly narrowly approved amendment I-3898 on October 16, voting 38–37, with 25 abstentions. The proposal would apply the existing 31.4% capital gains tax to gains realized when crypto assets are exchanged for qualifying MiCA-compliant electronic money tokens, including certain fiat-backed stablecoins. It would end the current tax deferral for these crypto-to-crypto conversions, but would not tax the full transaction value or impose a new rate. The crypto-to-stablecoin tax proposal is not yet law: it remains subject to the budget’s remaining approval stages and could be revised or withdrawn. If enacted, it is scheduled to take effect on January 1, 2027. The proposal also sets out an acquisition-cost and weighted-average basis for calculating gains. France’s public accounts minister opposed the measure, citing uncertainty over which stablecoins qualify and the difficulty of tracking transfers within crypto portfolios. A Chainalysis France executive warned that the crypto-to-stablecoin tax could shift some activity towards DeFi, peer-to-peer trades or offshore exchanges, potentially reducing visibility and revenue. Supporters estimate it could raise €1.5 billion, although the outcome would depend on investor behaviour and enforcement. For traders, the immediate effect is uncertainty; the proposal may influence stablecoin conversion strategies if adopted, while its direct impact on broad crypto prices is likely limited.
Neutral
The proposal does not directly target a specific cryptocurrency, and it is not yet law. Its passage could create short-term uncertainty for French traders and prompt some to delay stablecoin conversions or move activity to other venues. Such changes may affect local liquidity and trading patterns, but are unlikely by themselves to produce a substantial move in broad crypto prices or market stability. In the longer term, if enacted from 2027, the tax could alter how French investors manage conversions and potentially shift some activity towards DeFi, peer-to-peer markets or offshore platforms. These effects are jurisdiction-specific, and the summaries do not indicate a clear directional catalyst for any individual crypto asset. The likely price impact on cryptocurrencies is therefore neutral.