France's National Assembly adopted Amendment I-3898 on Friday as part of the 2027 Finance bill debate, proposing to impose capital gains tax on exchanges between cryptocurrencies and stablecoins. The amendment passed by a narrow margin of 38-37 votes, with 25 abstentions, in a session where only 100 of 577 lawmakers participated.
Filed by MP Nicolas Sansu and previously approved by the Finance Committee, the amendment seeks to address what French legislators characterize as a regulatory loophole. Stablecoins, which the proposal notes fulfill certain monetary functions including payments and investments, are currently not subject to taxation on these exchange transactions.
Under the proposal, French cryptocurrency holders would face a 31.4% capital gains tax rate each time they exchange a cryptocurrency for a stablecoin. Lawmakers argue the measure would generate tax revenue that creates no new burden on the economy.
The amendment's supporters point to data indicating significant undertaxation in France's cryptocurrency sector. Chainalysis research found that 90% of France's crypto gains go undeclared, with only 24,000 French taxpayers reporting approximately $427 million in gains during 2024.
If enacted without modification, the tax would take effect on January 1, 2027. However, the proposal remains controversial. The French government opposes the measure, and the Senate retains the authority to alter or reject it entirely. A Senate vote on the amendment's delivery is scheduled for next Tuesday.
Analysts have cautioned that the tax would likely alter trading behavior, as traders commonly use stablecoins to park gains while avoiding volatility before converting to fiat currency. Some observers suggest French crypto holders might shift toward alternative assets such as commodity-linked tokens to mitigate market volatility.
