French Crypto Execs Propose Taxing Crypto-to-Stablecoin Conversions

Three French crypto executives have proposed a new tax regime for cryptocurrency transactions, focusing on taxing conversions from crypto assets to stablecoins. Jean Meyer of Deblock, Damien Patureaux of Lyzi, and Pierre Morizot of Waltio argue that the current lack of taxation on crypto-to-stablecoin conversions creates a fiscal singularity that results in missed revenue and unbuilt infrastructure. They believe this measure would simplify crypto payments and encourage wider adoption by merchants.

Meyer suggested abandoning taxation of crypto capital gains in favor of taxing crypto-to-stablecoin exchanges, while keeping the exemption on crypto-to-crypto transactions. Morizot emphasized that the non-taxation of these transactions is a potential risk, as it could lead to higher tax collection from crypto holders alongside the implementation of DAC8, a directive expanded to more countries. Chainalysis estimates that over 90% of France's crypto gains go undeclared, based on 2025 data.

However, Claire Balva of the Association for the Development of Digital Assets (ADAN) criticized the proposal, stating that taxation can only occur at the fiat conversion level since taxes must be paid in euros, not in cryptocurrencies or stablecoins. Balva warned that the measure could push users to exchange to unregulated stablecoins like USDT. Despite the proposal, no changes to the current tax regime are expected to be passed.