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France’s National Assembly approved a budget amendment by 38 votes to 37 that would end tax deferral for gains when investors swap cryptocurrency for qualifying MiCA e-money tokens. The proposed 31.4% rate could apply from Jan. 1, 2027, but the measure still faces further parliamentary stages and may change or be removed.
France’s National Assembly has narrowly approved a budget amendment that would tax gains when investors swap cryptocurrency for certain stablecoins, bringing those transactions under the country’s 31.4% default capital-gains rate. Amendment I-3898 passed on Oct. 16 by 38 votes to 37, with 25 abstentions, but it is not yet law and could still be revised or removed during the remaining budget process.
The amendment would end the current tax deferral for exchanges of crypto assets when an investor receives an e-money token covered by the European Union’s MiCA framework. Under the proposal, a taxable gain could arise at the point of the swap, even if the investor does not cash out to euros or transfer proceeds to a bank account. The proposed start date is Jan. 1, 2027.
Under current French rules, crypto-to-crypto exchanges without an additional cash payment generally benefit from tax deferral. Taxable gains on private investments are subject to a default rate of 31.4%, although investors may choose taxation under the progressive income-tax scale. The amendment specifically addresses swaps into qualifying e-money tokens; it does not, in the supplied report, establish that every digital asset marketed as a stablecoin would receive the same treatment.
The text would also change how taxable gains are calculated. Rather than using a portfolio-wide calculation, it would base the calculation on the acquisition cost of the assets sold, using a weighted average when units of the same cryptocurrency were bought at different prices. The report does not provide worked examples of how this method would apply to individual trades.
Tax Could Apply Before Cashing Out
If enacted as written, the amendment would change the timing of tax for affected investors: a swap into a qualifying stablecoin could trigger a tax bill even when the investor keeps the value within crypto markets. That would remove a form of tax deferral on crypto-to-crypto transactions and could make the tax consequences of trading more immediate.
The proposal may also affect where French investors trade. François Volpoet, Chainalysis’ regional sales director for France, warned CoinDesk that the measure could push activity toward decentralized finance platforms, peer-to-peer transactions and offshore exchanges. That is a forecast, not a confirmed outcome. The practical impact would depend on the final law, its definitions and how authorities implement reporting and enforcement.
The amendment’s narrow vote and unresolved status matter for anyone planning around the proposed date. It has cleared a parliamentary hurdle, but investors should not treat the measure as a final tax rule. Crypto assets can be volatile, and tax liabilities may depend on the investor’s circumstances and the final legislation; this report is not financial or tax advice.
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From Deferral to a Taxable Swap
CoinDesk reported that the proposal had previously been approved by the National Assembly’s finance committee before lawmakers considered it as part of the 2027 budget. The Assembly’s Oct. 16 vote advanced the measure, but the budget still has further parliamentary stages. The amendment can be changed or dropped before the process concludes.
The key distinction is between an exchange that remains within crypto markets and a conversion into money held outside them. Under the rules described in the report, many crypto-to-crypto swaps without extra cash do not immediately trigger tax. Amendment I-3898 would remove that deferral for receipts defined as MiCA e-money tokens, bringing certain stablecoin swaps into the tax calculation.
Government officials and lawmakers raised questions during debate. Public Accounts Minister David Amiel opposed the measure unless implementation concerns were addressed, while finance committee rapporteur general Philippe Juvin said he favored retaining deferral because of crypto’s volatility. Their positions show that the proposal’s design and administration remain contested within the parliamentary process.
“We first need to define stablecoins, then ensure our ability to monitor and trace reallocations within a portfolio of assets.”
— David Amiel, France’s public accounts minister
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Final Tax Rules Still Pending
The amendment has passed a vote in the National Assembly, but the budget has not completed its parliamentary stages. Lawmakers could revise or remove the provision before it becomes law. The proposed Jan. 1, 2027, start date is therefore conditional on the measure surviving that process and taking effect as written.
Several implementation details remain unresolved in the source report. It does not explain how the final rules would define the full range of covered tokens, how authorities would track asset reallocations, or how taxpayers should handle the revised weighted-average cost calculation in specific cases. The report also gives no estimate of how many investors or transactions would be affected.
Warnings that the tax could drive trading offshore or into decentralized finance remain attributed predictions. The material does not establish whether those shifts will occur, or how enforcement and reporting would work across platforms based outside France.
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Budget Stages Will Decide the Outcome
The next step is the continuation of the 2027 budget’s parliamentary consideration. The amendment may proceed in its current form, be revised, or be removed before the budget is finalized. The proposed application date remains Jan. 1, 2027, if the provision becomes law on that timetable.
Further legislative text or administrative guidance would be needed to clarify which tokens qualify, how gains are calculated and reported, and how authorities expect to monitor swaps. Until those details are settled, the vote signals a proposed policy direction rather than a final, fully specified tax obligation.
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Key Questions
What did France’s National Assembly approve?
It adopted amendment I-3898 to the 2027 budget. The proposal would end tax deferral for gains on swaps from cryptocurrency into qualifying MiCA e-money tokens.
Would the tax apply when an investor does not cash out to euros?
Under the proposal, a gain could become taxable when an investor swaps into a covered stablecoin, even without withdrawing the funds to a bank account. The amendment is not yet law.
What rate does the proposal refer to?
The report describes France’s 31.4% default rate for taxable gains on private investments. It also says investors can opt for the progressive income-tax scale. The applicable treatment would depend on the final rules and the taxpayer’s circumstances.
When could the proposed change start?
The amendment proposes applying the change to transactions from Jan. 1, 2027. That date depends on the measure completing the budget process and becoming law.
Is the stablecoin tax provision final?
No. The National Assembly vote advanced the proposal, but the remaining parliamentary stages could change or remove it. Details on covered tokens, monitoring and calculation methods are not fully settled in the reported material.
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