France approves tax on stablecoin conversions

TLDR

France has not fully enacted a tax on stablecoin conversions, but a key parliamentary committee has backed a proposal to tax crypto to stablecoin swaps starting in 2027.

1. The National Assembly Finance Committee approved an amendment to tax every conversion from crypto into MiCA regulated stablecoins, but the full Assembly has not yet passed it.
2. The proposal would treat swaps into most fiat backed stablecoins as taxable disposals from 1 Jan 2027, using Frances existing 31.4 percent flat tax on capital gains.
3. If adopted, French users would lose the ability to park gains in stablecoins without crystallizing tax, and should watch the October plenary debates and similar moves across the EU.

Deep Dive

1. Committee Approval Status

On 7 October, Frances National Assembly Finance Committee adopted Amendment I CF1826, which would impose capital gains tax on every conversion from cryptocurrency into electronic money tokens covered by MiCA, including most fiat backed stablecoins from 2027 onward. This is reported in detail by Bitcoin.com.

However, the committee then voted down the entire revenue section of the 2027 budget, which means the government text going to the full Assembly does not automatically include these crypto amendments. Their sponsors must refile them during plenary debate that begins in mid October, as highlighted by Yahoo Finance.

Confidence: high because multiple independent reports agree the measure is at committee stage and not yet enacted.

2. How The Tax Would Work

Today, French rules generally tax crypto gains when you sell for fiat currency or spend crypto, while crypto to crypto and crypto to stablecoin swaps can defer tax. The new amendment explicitly targets this deferral by treating a swap into MiCA defined electronic money tokens as a taxable sale from 1 January 2027, according to TokenPost.

Gains would be calculated versus the original purchase price of the crypto being swapped, and taxed at Frances existing flat rate, which financial press notes is now 31.4 percent after social charge changes. The text does not introduce a special crypto rate, it applies the current framework to stablecoin swaps, as also described by Decrypt.

3. Impact And What To Watch

For French residents, using stablecoins as a rest stop to de risk without realizing gains would become much harder. Moving from Bitcoin to a regulated dollar or euro stablecoin could itself trigger capital gains tax once the rules take effect. Crypto industry figures like Merias Owen Simonin argue this removes one of the last tax flexibility tools for domestic investors, as quoted in the Bitcoin.com coverage.

The same package also includes a proposed exit tax on unrealized crypto gains above 800,000 euros for people moving their tax residence abroad, and a beneficial change allowing crypto losses to be carried forward for ten years, per TokenPost. The key next milestones are the National Assembly debates beginning around 13 October and a budget vote currently scheduled around 20 October, where lawmakers can reintroduce, amend or drop these measures.

Conclusion

France is moving toward a stricter view of stablecoins, treating crypto to stablecoin conversions more like cashing out than a neutral portfolio reshuffle. The committee vote shows clear political appetite to close perceived tax loopholes, even though the measures are not yet law. For crypto users, especially in France and the wider EU, the main takeaway is that tax and reporting rules around stablecoins are tightening, and the ability to defer tax by parking gains in regulated stablecoins may shrink over the next few years.