French Crypto Execs Push for Tax on Stablecoin Conversions

Three executives from French crypto-linked companies have proposed a new tax regime targeting conversions between cryptocurrencies and stablecoins. Jean Meyer of Deblock, Damien Patureaux of Lyzi, and Pierre Morizot of Waltio argue that taxing these exchanges directly would simplify compliance and encourage wider crypto adoption for payments.

In their proposal, the executives highlight that France currently does not tax crypto-to-stablecoin conversions, a loophole they describe as a 'fiscal singularity' that results in missed revenue and underdeveloped infrastructure. Patureaux noted that merchants often face customer questions about taxation, complicating crypto payments. Meyer suggested replacing capital gains taxes on crypto with taxes on crypto-to-stablecoin exchanges, while keeping crypto-to-crypto transactions exempt.

Morizot emphasized that the lack of taxation on these transactions creates uncertainty, likening it to a 'sword of Damocles.' The proposal aligns with the upcoming DAC8 initiative, an EU-wide crypto data-sharing program, which France has adopted. Chainalysis estimates that over 90% of France’s crypto gains remain undeclared.

Critics, including Claire Balva of the Association for the Development of Digital Assets (ADAN), argue that taxes can only be paid in euros, not in crypto or stablecoins. Balva warns that the proposal could push users toward unregulated stablecoins like USDT. However, she notes that no changes to the current tax regime are expected soon.