France's National Assembly narrowly approved a budget amendment that would tax cryptocurrency swaps into MiCA-regulated stablecoins starting in 2027. The vote passed by a single vote, with 38 deputies in favor, 37 against, and 25 abstaining. The measure, part of the 2027 budget, now faces further legislative hurdles, including a separate proposal requiring holders to report wallets over €100,000, which has sparked industry backlash.
The amendment would treat swaps from crypto into stablecoins as taxable sales, with gains calculated as the value of stablecoins received minus the cost of the crypto given up. The tax rate would be 31.4%, following recent adjustments to France's flat tax. Investors would also have to choose between documenting the actual cost of each asset or spreading their portfolio's total cost across holdings as of December 31, 2026.
Supporters, led by Nicolas Sansu of the left-wing GDR group, argue that stablecoins are conventional investment vehicles and that gains moved into them currently escape taxation. The government opposed the measure, citing the need for a legal definition of stablecoins and the ability to trace portfolio reallocations. The amendment was previously rejected by the finance committee but was revived after the committee's budget text was voted down.
Other proposed measures include an exit tax on crypto holdings over €800,000 and mandatory declarations for self-custodied crypto worth €100,000 or more, with fines up to €10,000 for non-compliance. The full revenue section of the budget is set to be voted on Tuesday, after which it will proceed to the Senate.