France is considering extending its 31.4% cryptocurrency capital gains tax to transactions involving EU-regulated stablecoins, potentially changing how investors manage their digital assets.
The proposal forms part of the country's 2027 budget legislation, currently under consideration in the National Assembly.
An amendment approved by the Finance Committee on October 7 would make conversions from cryptocurrencies such as Bitcoin into certain regulated stablecoins taxable events.
The measure specifically targets electronic money tokens classified under the European Union's Markets in Crypto-Assets Regulation (MiCA).
Currently, exchanging one cryptocurrency for another generally does not trigger capital gains tax in France. Taxes typically arise when investors sell their holdings for traditional currency or spend them.
If approved, the new rules would take effect on January 1, 2027, applying France's existing 31.4% flat tax to qualifying stablecoin conversions.
Chainalysis Warns of Offshore Trading Risks
The proposal has attracted criticism over its potential impact on cryptocurrency trading activity.
François Volpoet, Chainalysis' regional sales director for France, warned that taxing regulated stablecoins could encourage investors to move toward less transparent alternatives.
Because the amendment specifically targets MiCA-regulated electronic money tokens, other stablecoins could potentially remain outside its scope.
According to Volpoet, investors might respond by using decentralized finance platforms, peer-to-peer transactions or offshore exchanges operating beyond established tax-reporting arrangements.
Such behavior could undermine efforts to bring cryptocurrency activity into regulated financial markets.
Chainalysis estimated that France recorded $9.4 billion in taxable onchain cryptocurrency activity during 2025, including approximately $2.5 billion in gains.
However, those figures do not establish how much trading activity would shift if the proposed stablecoin tax becomes law.
Stablecoin Adoption Highlights Regulatory Differences
The proposed changes arrive as European stablecoin usage continues evolving under MiCA regulations.
Chainalysis reported that trading volume involving EURC, a euro-denominated stablecoin, increased approximately 2,727% between July 2024 and June 2025.
During the same period, USDC trading volume increased around 86%.
Volpoet highlighted these differences as evidence that regulatory developments can influence investor behavior and the adoption of particular digital assets.
The concern is that additional taxes on compliant stablecoins could create incentives to avoid regulated products, rather than encourage their adoption.
For investors frequently converting volatile cryptocurrencies into stablecoins, the proposal could also change the timing of taxable gains.
France Considers Additional Crypto Tax Measures
The stablecoin amendment is part of a broader package of cryptocurrency tax proposals introduced during France's 2027 budget discussions.
On October 9, the Finance Committee supported a separate amendment requiring taxpayers to disclose self-custodied cryptocurrency holdings worth at least €100,000.
Failure to comply could result in penalties reaching €10,000.
Volpoet warned that mandatory disclosures could introduce security risks if information about wealthy cryptocurrency holders were exposed.
Chainalysis documented 30 violent attacks targeting cryptocurrency holders in France during the first half of 2026, with more than 40% reportedly involving relatives of investors.
Lawmakers have also supported extending France's exit tax to substantial cryptocurrency holdings, potentially covering unrealized gains when wealthy investors relocate abroad.
Another amendment would allow cryptocurrency losses to be carried forward for up to 10 years, bringing their treatment closer to certain traditional investments.
Proposed Measures Still Face Parliamentary Approval
Despite receiving committee support, none of the cryptocurrency tax amendments have become law.
The Finance Committee rejected the revenue section of the government's 2027 budget by 31 votes to three, requiring the proposed measures to be submitted again during parliamentary debate.
Lawmakers are scheduled to vote on the revenue section on October 20, 2026, while the broader budget process continues toward December.
France's approach contrasts with Greece, which recently proposed a 10% cryptocurrency capital gains tax, significantly below France's existing 31.4% rate.
The French proposals demonstrate growing attention toward cryptocurrency taxation, investor reporting and regulatory compliance.
However, their final scope will depend on parliamentary approval, and the proposed stablecoin tax will not take effect unless the legislation is enacted.
