France’s National Assembly has narrowly approved a proposal that would expose cryptocurrency investors to capital gains tax when swapping digital assets for qualifying stablecoins, potentially changing how traders manage their portfolios if the measure becomes law in 2027.
Lawmakers adopted amendment I-3898 to the 2027 budget on October 16 by 38 votes to 37, with 25 abstentions. The vote advances a proposal previously endorsed by the Assembly’s finance committee, but the measure has not completed the legislative process and could still be amended or removed before becoming law.
Under the proposal, the changes would take effect on January 1, 2027. France’s current tax framework generally allows investors to defer capital gains taxation when exchanging one cryptocurrency for another without receiving additional cash. Taxable gains on private crypto investments face a default rate of 31.4%, although investors can opt for the progressive income-tax scale.
Amendment I-3898 would remove that deferral for transactions in which investors receive electronic money tokens qualifying as stablecoins under the European Union’s Markets in Crypto-Assets (MiCA) framework. Investors could consequently face a tax liability when converting appreciated crypto holdings into qualifying stablecoins, even if they do not cash out into euros or transfer proceeds to a bank account.
The proposal has prompted concerns about its potential effect on trading behavior and France’s digital asset market. François Volpoet, Chainalysis’ regional sales director for France, warned that the measure could push investors toward decentralized finance platforms, peer-to-peer transactions and offshore exchanges operating outside international tax-reporting arrangements. Such a shift could complicate oversight rather than simply increase tax collection, although the eventual impact would depend on the final legislation and how investors respond.
Public Accounts Minister David Amiel also questioned how the measure could be implemented and asked lawmakers to withdraw it. During the parliamentary debate, he argued that authorities first needed a clear definition of stablecoins and a reliable way to monitor and trace reallocations within investment portfolios.
Philippe Juvin, the finance committee’s rapporteur general, supported retaining the existing tax deferral, citing the volatility of crypto assets. Their objections highlight the practical challenge of taxing transactions that may represent a change in the composition of a digital asset portfolio rather than a withdrawal into traditional currency.
The amendment would also change how taxable gains are calculated. Instead of using a portfolio-wide capital gains calculation, France would move toward calculating gains based on the acquisition cost of the assets sold. Where investors purchased units of the same cryptocurrency at different prices, the proposal would use a weighted average acquisition cost.
If enacted, the measure could make some stablecoin conversions a taxable event and require investors to maintain more detailed transaction and cost-basis records. However, its final scope, implementation and effect on trading activity remain uncertain while the 2027 budget continues through parliament.
