French legislators are reviewing an amendment that would treat the exchange of cryptocurrencies for stablecoins classified as electronic-money tokens under the EU’s MiCA framework as a taxable event. Under the current system, converting one crypto asset to another does not trigger capital-gains tax, but the amendment would apply the flat 31.4% rate to such swaps beginning 1 January 2027. The proposal is part of the draft 2027 budget that the National Assembly must approve before 10 December.
Potential impact on stablecoin market
Analysts warn the tax could incentivise users to seek stablecoins that fall outside the MiCA definition, potentially driving activity toward less regulated alternatives. The rationale is that transactions involving regulated tokens are easier for authorities to monitor than those executed on decentralized finance platforms or held in self-custodied wallets. If traders migrate to unregulated tokens, the intended transparency benefits of the tax may be undermined.
Additional reporting and exit tax measures
A separate amendment would obligate French taxpayers to disclose any self-hosted crypto wallet containing at least €100,000 in assets, with non-compliance penalties reaching roughly $11,600. The measure follows a rise in physical attacks targeting crypto holders in France, which accounted for 63.5% of Europe’s reported incidents as of July. Lawmakers also backed extending the existing exit tax to crypto positions valued around $900,000, bringing unrealised gains of high-net-worth individuals into the tax net. Finally, a provision would permit investors to carry forward crypto losses for up to ten years, aligning crypto tax treatment more closely with equities.
Legislative timeline
The finance committee adopted the swap-tax amendment on 7 October and the wallet-disclosure amendment on 9 October. However, the committee rejected the revenue portion of the 2027 budget, meaning the crypto-related changes must be resubmitted for a full Assembly vote. A vote on the revenue section is scheduled for 20 October, after which the amendments could advance to a final parliamentary decision.
Why it matters
If enacted, the tax would raise the cost of moving crypto holdings into EU-regulated stablecoins, potentially reshaping user behaviour across Europe’s crypto ecosystem. The accompanying disclosure and exit-tax rules signal a broader push by French authorities to capture more revenue from digital assets, while also exposing investors to heightened reporting obligations and security risks. The outcome will influence how regulators elsewhere approach stablecoin taxation and could set a precedent for integrating crypto into traditional fiscal frameworks.
