France’s Parliament Approves 31.4% Capital Gains Tax on Crypto to Stablecoin Trades From 2027

French lawmakers have approved a proposal to tax cryptocurrency conversions into stablecoins at 31.4% from 2027, following a narrow parliamentary vote that still leaves the measure awaiting final legislative approval.

According to the official voting results of the National Assembly of France, the amendment (I-3898) was approved on October 16. Voting was 38 for the proposal, 37 against, 25 abstaining.

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France’s Crypto Tax Proposal Targets Stablecoin Conversions

The approved amendment would allow investors to be liable for capital gains tax upon converting cryptocurrencies to qualifying stablecoins. If Parliament approves the budget, the changes will take effect on January 1, 2027.

These are the current French tax rules for investors who trade from one cryptocurrency to another without receiving or giving cash. However, the amendment would end this treatment for electronic money tokens covered by Europe’s MiCA regulation.

As a result, investors may be liable to taxes on qualifying gains without having to change their investments into euros or cash out. As earlier reports on France’s stablecoin tax proposal explained, the measure first advanced through the finance committee.

The amendment was voted on on October 16 and approved, not the entire budget for 2027. The proposal has to undergo additional parliamentary procedures before it can become law. The National Assembly must review the remaining budget provisions before the Senate examines them.

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French Officials Question the Proposed Stablecoin Rules

During parliamentary discussions, Public Accounts Minister David Amiel raised concerns about enforcing the proposed taxation system. He asked lawmakers to set aside the revision until the authorities have set clearer definitions and tracking measures.

Finance committee rapporteur Philippe Juvin argued that the current tax deferral should not be eliminated due to the volatility of cryptocurrency prices. Industry representatives expressed concerns about possible changes in investor behavior if lawmakers adopt the measure.

Chainalysis executive François Volpoet cautioned investors to migrate to decentralized exchanges and offshore trading platforms. He expressed special concern about transactions not subject to international tax-reporting regimes.

Lawmakers Propose Changes to Crypto Gains Calculations

The amendment also would affect the ways French taxpayers would calculate cryptocurrency gains and losses, beyond stablecoin conversions.

The proposed method would compare an asset’s sale proceeds with its acquisition cost. For identical cryptocurrencies purchased at different prices, investors would use a weighted-average acquisition cost.

Separately, lawmakers have discussed reporting requirements for big self-custody wallets. The proposed legislation applies to property values over EUR 100,000, and carries fines of up to EUR 10,000. The National Assembly must review the remaining budget provisions before the Senate examines them.