France's National Assembly backs 31.4% tax on crypto-to-stablecoin swaps

Key points

• Amendment I-3898, filed by MP Nicolas Sansu, passed by 38 votes to 37 with 25 abstentions, with only 100 of 577 MPs taking part.
• Chainalysis found 90% of France's crypto gains go undeclared, with 24,000 taxpayers declaring nearly $427m in gains for 2024.
• If passed unchanged, the tax would take effect on 1 January 2027, with delivery to the Senate decided by a vote next Tuesday.

France's National Assembly has narrowly backed a 31.4% capital gains tax on crypto-to-stablecoin swaps, as part of its debate on the 2027 Finance bill. Amendment I-3898, filed by MP Nicolas Sansu and cleared by the Finance Committee last week, passed by 38 votes to 37 with 25 abstentions; only 100 of the 577 MPs voted.

The proposal aims to close what legislators call a loophole, since stablecoins perform some of the functions of money, including payments and investments. Such exchanges are currently untaxed, and the amendment argues the change would bring in tax revenue without creating any new burden.

Undeclared gains

The measure would hit arbitrage and speculative trading, as traders often hold gains in stablecoins before converting to fiat. Chainalysis found that 90% of France's crypto gains go undeclared, with 24,000 taxpayers declaring nearly $427m in gains for 2024. Analysts say French holders would lose a way to sidestep volatility, and some may turn to gold-linked tokens.

The government remains opposed, and French media reports it could drop the amendment or approve the bill's first reading without changes. If it passes unaltered, the tax would apply from 1 January 2027, with the Senate deciding by vote next Tuesday whether to take it up.

What to watch: The Senate is due to decide by vote next Tuesday whether to take up the amendment, which could be changed or rejected before the budget bill is approved.

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