France Considers Taxing Crypto-to-Stablecoin Swaps Under 2027 Budget

France is considering changes to its cryptocurrency tax rules that could make certain crypto-to-stablecoin conversions taxable events, potentially ending the tax deferral currently available for these transactions. However, the proposal faces further parliamentary hurdles after the National Assembly’s Finance Committee rejected the revenue section of the country’s 2027 budget bill.

An amendment adopted by the committee on October 7 would apply France’s existing cryptocurrency capital gains tax to swaps into qualifying electronic money tokens under the European Union’s Markets in Crypto-Assets Regulation (MiCA). The proposed change would take effect on January 1, 2027, if enacted.

The proposal would bring certain stablecoin conversions within the same tax framework that applies when investors dispose of crypto assets for conventional currency. France currently applies a 31.4% flat tax to cryptocurrency gains in the relevant circumstances.

Which Stablecoin Transactions Could Be Taxed?

Under France’s current rules, exchanging one cryptocurrency for another generally does not trigger an immediate capital gains tax liability for individual investors. Converting crypto into a qualifying stablecoin can therefore allow investors to retain exposure to digital assets without immediately realizing a taxable disposal.

The proposed amendment would remove that deferral for transactions in which investors exchange crypto assets for electronic money tokens as defined under MiCA. These tokens include qualifying fiat-pegged stablecoins.

The measure would not automatically apply to every stablecoin. Its scope would depend on whether the asset falls within the relevant MiCA definition and the final wording of any legislation adopted.

The proposal’s supporters argue that converting crypto into a fiat-pegged stablecoin can serve a similar economic purpose to converting it into conventional currency, while allowing investors to continue using the funds within digital asset markets.

Parliamentary Approval Remains Uncertain

Although the Finance Committee adopted the stablecoin-tax amendment on October 7, it rejected the revenue section of the 2027 budget on October 9 by 31 votes to three. Consequently, the committee’s amended budget text did not advance to the full National Assembly with the crypto-tax measures intact.

Lawmakers began examining the budget’s revenue provisions in the National Assembly on October 13. The stablecoin-tax proposal is not law, and its implementation would depend on its inclusion in the legislative text and the completion of the parliamentary process.

The committee also backed other proposed changes affecting crypto investors, including extending France’s exit-tax framework to certain crypto holdings when eligible taxpayers move their tax residence abroad. These measures remain subject to the legislative process as well.

Europe Takes Different Approaches to Crypto Taxation

France’s proposal comes as European countries develop their own approaches to taxing digital assets, even as they operate within a shared regulatory framework for crypto markets.

Greece, for example, has proposed a 10% capital gains tax on cryptocurrency gains under a separate draft framework. As covered in Unlock Blockchain’s report, Greece Proposes 10% Crypto Gains Tax as Digital Assets Enter Tax Framework, the proposal represents a different approach to integrating crypto investments into national tax systems.

The comparison highlights the distinction between the tax rate applied to realized gains and the transactions that trigger taxation. While Greece’s proposal focuses on a dedicated tax framework for crypto gains, France’s amendment would change when certain crypto-to-stablecoin conversions become taxable.

Broader tax transparency requirements are also reshaping the environment for digital asset investors. The OECD’s Crypto-Asset Reporting Framework (CARF) and related reporting initiatives aim to improve tax authorities’ access to information about crypto transactions and holdings. Unlock Blockchain previously examined this development in Crypto Tax Reporting Goes Global as CARF Takes Effect Across 48 Jurisdictions Starting 2026.

For investors and service providers, the interaction between national tax rules and digital asset regulation will remain important as European authorities seek to bring crypto activity within established financial and tax frameworks.

France’s proposal now faces a further legislative test. Whether it returns to the budget text, and in what form, will determine whether qualifying stablecoin conversions become taxable events from 2027.