French Committee Approves Tax on Stablecoin Conversions From 2027

Key Takeaways

• A French committee backed a proposal to tax crypto-to-stablecoin swaps, closing a tax deferral loophole.
• The amendment removes a crucial tax flexibility lever, preventing investors from parking untaxed crypto gains.
• The proposed rule faces a plenary vote on October 13, sparking strong backlash from local crypto leaders.

Stablecoin Swap Tax Proposal Passed in France By French National Assembly Committee

French lawmakers are taking a strong approach to recover what they believe are losses from using stablecoins, tokens pegged to the value of a fiat currency, as money.

The French National Assembly Finance Committee recently backed and adopted Amendment I-CF1826, which introduces capital gains tax responsibilities for every swap transaction from any cryptocurrency to stablecoins.

The proposal, introduced by MP Nicolas Sansu, explains that its purpose is to address “the tax deferral enjoyed, without valid reason, by conversions of cryptoassets to stablecoins.”

Under current regulation, only crypto-to-fiat transactions are taxed as capital gains. Nonetheless, Sansu stresses that, by taking advantage of a regulatory loophole, capital gains from exchanging crypto for fiat-pegged stablecoins are exempt from this tax.