France Approves 31% Capital Gains Tax on Crypto-to-Stablecoin Swaps

France’s parliament has voted to impose a 31.4% capital gains tax on cryptocurrency trades into stablecoins, removing a key tax deferral for investors.

The National Assembly narrowly passed amendment I-3898 to the 2027 budget on October 16, with a vote of 38 to 37 and 25 abstentions. The change targets transactions from January 1, 2027, and specifically removes the tax deferral previously available for trades involving stablecoins compliant with the EU’s Markets in Crypto-Assets (MiCA) regulation.

Critics of the measure argue it could drive trading activity away from regulated French platforms and toward decentralized finance (DeFi) protocols or offshore exchanges. The tax applies to the realized gain at the moment a cryptocurrency like Bitcoin or Ethereum is swapped for a euro-pegged or other stablecoin.

The proposal is not yet law and remains subject to further parliamentary scrutiny as part of the broader budget process, where it could still be amended or removed.