France’s National Assembly has narrowly backed a proposal that could make some cryptocurrency-to-stablecoin swaps taxable events, removing a deferral currently available under French tax rules. The measure is aimed at transactions involving stablecoins classified as e-money tokens under the European Union’s Markets in Crypto-Assets framework, or MiCA.
Narrow parliamentary vote
Lawmakers approved amendment I-3898 to the country’s 2027 budget on Oct. 16 by 38 votes to 37, while 25 members abstained. The vote followed the proposal’s earlier approval by the parliamentary finance committee.
The amendment is not yet final. It must pass the remaining stages of the budget process and could still be changed or rejected before it becomes law. If adopted in its current form, the new treatment would apply to transactions carried out from Jan. 1, 2027.
The proposal would bring gains realized when investors exchange cryptocurrency for qualifying stablecoins closer to France’s standard tax treatment for taxable private-investment gains. That rate is 31.4%, although taxpayers can choose the progressive income-tax scale instead.
Stablecoins are digital assets designed to maintain a relatively stable value, often by referencing a fiat currency. Investors commonly use them to move between crypto assets without immediately converting holdings into euros or another traditional currency. The proposed French change focuses on stablecoins that meet the MiCA definition of e-money tokens.
What would change for investors
Under current French rules, crypto-to-crypto exchanges that do not involve an additional cash payment generally benefit from tax deferral. In practical terms, the taxable moment can be postponed when an investor moves from one digital asset to another rather than cashing out into fiat currency.
Amendment I-3898 would remove that deferral for the specified MiCA-compliant stablecoins. As a result, a holder could potentially owe tax when transferring a cryptocurrency into an eligible stablecoin, even if the proceeds remain within the digital-asset ecosystem and are not withdrawn to a bank account.
The measure would also change how capital gains are calculated. Instead of using a portfolio-wide calculation, the text would base the gain on the acquisition cost of the assets sold. Where units of the same cryptocurrency were purchased at different prices, the calculation would use a weighted average cost.
That accounting change could affect how investors track taxable gains across multiple purchases. However, the amendment’s final wording and legal status remain subject to the rest of the parliamentary process.
Concerns over trading and enforcement
The proposal has prompted warnings that a tax on stablecoin swaps could influence where and how French residents trade. Francois Volpoet, Chainalysis’ regional sales director for France, told CoinDesk that the measure could push investors toward decentralized-finance platforms, peer-to-peer transactions and offshore exchanges outside international tax-reporting arrangements, according to CoinDesk’s reporting.
Public Accounts Minister David Amiel also questioned whether the measure could be implemented effectively and called for its withdrawal. During the parliamentary debate, he said lawmakers first needed to define stablecoins and ensure that authorities could monitor and trace reallocations within an investment portfolio.
Philippe Juvin, the finance committee’s rapporteur general, supported retaining the existing deferral, citing the volatility of crypto markets. His position reflects a concern that a tax charge could arise during a swap even when an investor has not converted the holding into conventional money.
The debate therefore covers more than the headline tax rate. It also concerns how regulators identify qualifying stablecoins, how exchanges report transactions and how investors establish the acquisition cost of assets moved between different forms of digital currency.
Current market picture
Moneyiar market data at 08:33 on Oct. 21, 2026, showed the following prices and moves:
- STABLE: $0.027028716, up 7.14% over 24 hours and 1.38% over seven days.
- COMP: $25.5859913358, up 19.29% over 24 hours and 11.1% over seven days.
- CAP: $0.0675605199, down 0.82% over 24 hours and 23.26% over seven days.
- PRO: $0.3469821081, up 0.76% over 24 hours and down 8.11% over seven days.
These figures cover selected assets and do not determine the outcome of France’s legislative process. The tax proposal remains under consideration until the budget completes its remaining parliamentary stages.
