France's National Assembly narrowly approved a budget amendment on Friday that would make crypto-to-stablecoin swaps taxable events starting January 1, 2027. Of 100 deputies participating, 38 voted in favor, 37 against and 25 abstained, giving the measure the exact majority needed under the Assembly's rules.
The amendment, I-3898 to the 2027 budget, would classify conversions from cryptocurrencies into MiCA-regulated stablecoins as sales. Currently, French holders can move between crypto assets without immediate tax liability, with obligations triggered only when euros are received or crypto is spent. Under the proposed change, gains would be calculated as the value of the stablecoins received minus the purchase cost of the crypto given up, and taxed under France's flat rate, which has risen to 31.4%.
The legislation would also alter cost-basis rules. Instead of a single portfolio-wide acquisition cost, each coin sold would carry its own purchase price, averaged across multiple purchases. Investors with holdings from before 2027 would have a one-time irrevocable choice between documenting the actual cost of each asset or spreading the portfolio's total cost across holdings as of December 31, 2026.
Amendment author Nicolas Sansu and the left-wing GDR group argued that stablecoins are used as conventional investment vehicles and that gains moved into them currently escape the flat tax. They noted the UK and Italy have legislated along similar lines. Public Accounts Minister David Amiel opposed the measure, saying stablecoins need a legal definition and authorities must be able to trace reallocations within portfolios.
The amendment still must survive the rest of France's budget process. The Assembly is set to vote on the full revenue section Tuesday, after which the budget moves to the Senate. A separate committee proposal would require holders to declare self-custodied crypto worth at least €100,000 at year-end, with fines of up to €10,000, drawing industry backlash amid concerns over physical security and high-profile crypto kidnappings in France.
