France's proposed stablecoin tax risks pushing traders to unmonitored channels, says Chainalysis
France weighs 31.4% tax on regulated stablecoin swaps
French lawmakers are debating a proposal that would treat exchanges between cryptocurrencies and EU-regulated stablecoins as taxable events. Under the plan, such swaps would be subject to France's existing 31.4% capital gains tax rate starting January 1, 2027.
The proposal is part of France's 2027 budget, which the National Assembly began debating last week. Lawmakers have until December 10 to pass the measure. An amendment was adopted by the finance committee on October 7.
Key details of the proposal
- Swaps from cryptocurrencies like Bitcoin into stablecoins regulated under the EU's Markets in Crypto-Assets (MiCA) framework would trigger a 31.4% tax.
- The EU's MiCA rules for electronic money tokens fully took effect on July 1, 2026.
- Currently, swapping one cryptocurrency for another does not trigger capital gains tax in France. The tax is applied only when investors cash out or spend their crypto holdings.
- Another measure in the budget would require taxpayers to disclose self-hosted wallets holding at least €100,000.
- The budget also includes extending the exit tax to large crypto holdings and allowing losses to be carried forward for 10 years.
What Chainalysis is warning about
Francois Volpoet, Chainalysis' CEO for France, said the proposal could undermine efforts to bring more crypto activity into the regulated financial system.
Volpoet wrote in an email to CoinDesk: "Do we want more taxpayers to declare their assets, or a higher tax rate applied to a base that is increasingly evaded?" He added that authorities can more easily monitor regulated stablecoin transactions than trades made through decentralized finance, or DeFi, platforms where activity is harder to track.
The key concern is that the tax targets only a specific category of stablecoins that fall under EU rules. Traders could avoid the new tax by switching to stablecoins outside the EU regulatory framework, which are less transparent and harder for authorities to monitor.
Legal status of the proposals
The proposed tax changes and other budget measures have not become law. They still need to be resubmitted to the full National Assembly for a vote before they can take effect.
Why this matters
The proposal represents a significant shift in how France treats digital asset transactions. If enacted, it would be the first time France taxes certain stablecoin swaps as capital gains events, potentially reshaping how French investors use regulated versus unregulated stablecoins.
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.