Key Takeaways
- • France's National Assembly approved an amendment on October 16, 2026 that would tax investment gains when crypto assets are converted into stablecoins, by a vote of 38 to 37 with 25 abstentions.
- • If enacted, gains would be taxed at France's flat rate of 31.4% (12.8% income tax plus 18.6% social levy), applied at the conversion stage rather than when holdings are cashed out into fiat.
- • The amendment, introduced by lawmaker Nicolas Sansu and others, is scheduled to take effect January 1, 2027, but still requires Senate review and further legislative procedures.
- • The government opposed the measure, arguing that stablecoin scope and transaction-tracking methods must be clarified first and that implementation would be overly complex.
Summary
France's National Assembly, the lower house of parliament, has approved an amendment that would tax investment gains when crypto assets are converted into stablecoins, according to bloomingbit. The National Assembly passed the measure on October 16 during deliberations on the 2027 budget, by 38 votes to 37 with 25 abstentions. The amendment was introduced by lawmaker Nicolas Sansu and others and passed by a single vote.
Under the current French framework, taxation can be deferred under certain conditions when individuals exchange one crypto asset for another. An investor who converts Bitcoin into a stablecoin after a price gain can postpone tax until the holdings are cashed out into euros or another fiat currency. The amendment would change this by making conversions into stablecoins pegged to a single fiat currency a taxable event at the conversion stage. It uses the European Union's Markets in Crypto-Assets (MiCA) definition of electronic money tokens. The tax would apply to investment gains rather than the full transaction amount, at the 31.4% flat rate.
Supporters argue that stablecoins are used for payments and reinvestment, so there is no reason to treat them differently from conversions into fiat currency. The government opposed the amendment, contending that the scope of stablecoins and methods for tracking transactions should be clarified first. It said that in its current form implementation would be overly complex and the amendment should be withdrawn.
The measure was adopted during the lower house's first review of the budget bill. It is scheduled to take effect January 1, 2027, if finally enacted, but it still must pass the Senate and subsequent legislative procedures before becoming law.
Under the current French framework, taxation can be deferred under certain conditions when individuals exchange one crypto asset for another. An investor who converts Bitcoin into a stablecoin after a price gain can postpone tax until the holdings are cashed out into euros or another fiat currency. The amendment would change this by making conversions into stablecoins pegged to a single fiat currency a taxable event at the conversion stage. It uses the European Union's Markets in Crypto-Assets (MiCA) definition of electronic money tokens. The tax would apply to investment gains rather than the full transaction amount, at the 31.4% flat rate.
Supporters argue that stablecoins are used for payments and reinvestment, so there is no reason to treat them differently from conversions into fiat currency. The government opposed the amendment, contending that the scope of stablecoins and methods for tracking transactions should be clarified first. It said that in its current form implementation would be overly complex and the amendment should be withdrawn.
The measure was adopted during the lower house's first review of the budget bill. It is scheduled to take effect January 1, 2027, if finally enacted, but it still must pass the Senate and subsequent legislative procedures before becoming law.
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