France’s National Assembly has narrowly approved a budget amendment that will make swapping cryptocurrencies for MiCA-compliant stablecoins a taxable event, starting from January 1, 2027. The decision followed a tense session on Friday, where just one vote separated supporters and opponents.
Details of the Tax Amendment
Only 100 deputies participated in the vote, with 38 backing the amendment, 37 opposing, and 25 abstaining. This razor-thin majority revived the measure, which had previously failed in the finance committee due to rejection of the wider budget text.
Currently, French crypto investors are taxed only when they convert digital assets back into euros or spend them. Moving funds between different cryptocurrencies does not trigger a tax liability, as long as traditional fiat is not involved. However, under the new law, converting digital assets into stablecoins regulated under the EU’s MiCA framework will be treated as a taxable sale.
The proposed rule covers stablecoins pegged to a single official currency, and explicitly includes those recognized as electronic money tokens under MiCA, the European Union’s suite of crypto regulations.
From 2027, gains will be calculated based on the value of the received stablecoins minus the original purchase cost of the crypto given up. The flat tax applied to such gains will be 31.4%, following an increase to social charges in 2026.
The amendment also updates how cost basis is determined. Instead of a single aggregate figure for the overall portfolio, each asset sold will have its purchase price tracked individually, averaged where multiple purchases are involved. Investors holding crypto before 2027 will have to make a one-time, final choice: either meticulously document the real acquisition cost of each asset or allocate their total portfolio cost proportionally, based on their holdings at the end of 2026.
Authors of the amendment, led by Nicolas Sansu from the left-wing GDR group, say stablecoins act as “entirely conventional investment vehicles.” They state that gains converted into these tokens bypass the French flat tax due to “a hole in the legislation,” and pointed out that both the UK and Italy have already moved to close similar gaps.
Despite the Assembly’s support, the French government opposed the amendment. Public Accounts Minister David Amiel called for its withdrawal, arguing that a legal definition for stablecoins must come first and highlighted the difficulty in tracking internal asset reallocations within portfolios. He emphasized that regulatory clarity is needed before implementing such a tax change.
The finance committee had previously backed Sansu’s proposal, along with an amendment seeking to extend France’s exit tax to crypto held by households worth more than €800,000. However, after the committee rejected the budget’s overall revenue section, the full Assembly was required to address the stablecoin tax and other measures once again.
Reporting Requirements and Industry Backlash
A separate committee amendment would oblige French residents to declare self-custodied crypto wallets with values equal to or above €100,000 ($112,000) at the end of each year. Those who fail to comply could face fines of up to €10,000 ($11,000).
The proposal has sparked concern and strong protests within the French crypto community. Some industry participants argue that forcing disclosure of substantial crypto holdings exposes individuals to personal security risks. They point to a recent spate of high-profile, in-person robberies targeting crypto holders in France, including the 2025 abduction and injury of Ledger co-founder David Balland.
Concerns voiced by crypto holders highlight that mandatory reporting would increase the threat to personal safety, noting that recent kidnappings have already targeted high-profile figures in the sector.
Neither of these proposals has yet become law. The National Assembly is scheduled to vote on the full set of budget measures on Tuesday, after which the text will proceed to the Senate for further consideration.
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