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French lawmakers have voted to impose a 31.4% flat tax on conversions from cryptocurrency into stablecoins, ending a tax-deferred treatment that has applied to on-chain rebalancing. Under the measure, swapping digital assets into tokens such as <a href="https://x.com/search?q=%24USDC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$USDC</a>, <a href="https://x.com/search?q=%24USDT&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$USDT</a> and <a href="https://x.com/search?q=%24EURC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$EURC</a> would trigger a taxable event, regardless of whether proceeds stay in self-custody wallets.
<h2 id="what-the-amendment-changes">What the amendment changes</h2>
<cite>France's National Assembly passed Amendment I-3898, part of the 2027 budget bill, on October 16 by a narrow vote of 38 in favor, 37 against and 25 abstentions.</cite><cite>The amendment, led by Nicolas Sansu, would impose a 31.4% capital gains tax on such transactions starting in 2027.</cite>
<cite>Under current French rules, tax on crypto-to-crypto exchanges is generally deferred, and the bill typically comes due only when a holder converts to fiat currency or uses crypto to make a purchase.</cite><cite>The amendment would remove that option for single-currency stablecoins, so moving into one would be treated much like cashing out from the tax authority's perspective.</cite>
The rate is not new. <cite>Gains would be hit with France's existing flat tax rate of 31.4%, made up of 12.8% in income tax and 18.6% in social contributions.</cite><cite>The measure targets only electronic money tokens regulated under the EU's MiCA framework.</cite><cite>The tax applies to qualifying gains, not the entire amount converted.</cite>
<h2 id="not-yet-law">Not yet law</h2>
The vote is a first step. <cite>The measure still has to pass additional parliamentary stages, including a solemn vote on the budget's revenue section.</cite><cite>The Defiant reports that the budget vote has been moved to November 3, while a full Assembly vote has been scheduled for November 17, 2026.</cite><cite>The rule also faces a Senate vote before it could take effect in January 2027.</cite>
The thin margin leaves the outcome open. <cite>With the first round decided 38 to 37, attendance alone could prove decisive.</cite>
Industry analysts have flagged the risk of displacement. <cite>Chainalysis estimates that France reported $9.4 billion in taxable onchain crypto activity in 2025, including $2.5 billion in gains.</cite> CoinDesk reported that the firm warned the proposal could drive crypto activity offshore.
For French holders, the practical effect is on strategy. <cite>Rotating into a pegged token to lock in gains would stop being tax-neutral, and every rotation into a single-currency stablecoin could carry a 31.4% bill on any gain.</cite>
Sources
<ul>
 <li><a href="https://cryptobriefing.com/france-stablecoin-tax-budget-vote-november/" rel="noopener noreferrer nofollow">Crypto Briefing: France pushes budget vote on stablecoin swap tax to November 3</a></li>
 <li><a href="https://www.coindesk.com/policy/2026/10/14/proposed-french-tax-on-regulated-stablecoins-could-drive-crypto-traders-offshore" rel="noopener noreferrer nofollow">CoinDesk: France's 31.4% stablecoin tax proposal risks driving crypto activity offshore, warns Chainalysis</a></li>
 <li><a href="https://news.bitcoin.com/regulation-and-legal/french-assembly-narrowly-adopts-stablecoin-swap-tax-proposal/" rel="noopener noreferrer nofollow">Bitcoin.com News: French Assembly Narrowly Adopts Stablecoin Swap Tax Proposal</a></li>
</ul>

France imposes tax on crypto-stablecoin conversion

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