French Crypto Executives Propose Taxing Stablecoin Conversions

Crypto executives in France are pushing for a tax reform that would treat conversions between volatile cryptocurrencies and stablecoins as taxable events. The proposal comes from Jean Meyer of Deblock, Damien Patureaux of Lyzi, and Pierre Morizot of Waltio, who argue that the current system, which only taxes conversions to euros or spending, is outdated. They believe the current rules discourage the use of crypto for everyday transactions and slow the development of domestic payment infrastructure.

The executives suggest shifting the taxable moment to the conversion into a regulated stablecoin, which would simplify later payments and bank withdrawals. They also propose dropping the portfolio-wide apportionment method in favor of an asset-by-asset approach, similar to how shares are treated. This change would not raise the tax rate or tax the same gain twice, but rather adjust the timing of the tax event.

The idea has sparked debate within the industry. The main trade association argues that tax should only fall when value returns to euros, warning that taxing moves into regulated euro stablecoins could push users toward unregulated dollar tokens. Others note that the current crypto-to-crypto exemption is one of the few favorable aspects of the French regime and should not be given up without clear offsets.

With the 2027 budget debate approaching, any changes would likely come through parliamentary amendments rather than a prepared bill. The executives also listed other concessions they want examined, including multi-year loss carry-forwards and a higher exemption threshold for small crypto payments.