Three executives from French crypto-linked companies have proposed implementing direct taxation on conversions between cryptocurrencies and stablecoins. Jean Meyer, CEO of Deblock; Damien Patureaux, co-founder of Lyzi; and Pierre Morizot, CEO of Waltio, presented the idea as a way to address what they describe as a "fiscal singularity" in France's current tax regime.
Under current French tax law, holders who convert cryptocurrencies into stablecoins do not trigger taxation. The executives argue this gap represents missed government revenue and fails to provide competitive advantage to the country's crypto ecosystem.
Patureaux and Meyer, whose companies provide electronic payment solutions supporting crypto and stablecoins, contend the proposal would simplify tax calculations for users and accelerate crypto adoption as a payment method. Patureaux noted that merchants frequently face customer questions about taxation implications, creating administrative friction.
Meyer suggested abandoning taxation of crypto capital gains in exchange for taxing crypto-to-stablecoin conversions while maintaining the current exemption on crypto-to-crypto transactions. Morizot, who heads a tax software company, warned that the current non-taxation of crypto-to-stablecoin transactions poses long-term risks and could be addressed through the proposal.
The proposal aligns with France's participation in DAC8, a crypto data-sharing initiative being expanded across EU countries.
However, Claire Balva, General Director of the Association for the Development of Digital Assets (ADAN), raised concerns about the measure. She argued that taxation can only occur at the point of fiat conversion, since taxes must be paid in euros rather than crypto or stablecoins. Balva also cautioned that such a policy could push users toward unregulated stablecoins outside the EU framework.
According to Balva, the proposal remains preliminary, and no changes to France's current tax regime are expected to be implemented.
