France Approves 31.4% Crypto Tax Proposal in Narrow 38-37 Vote

France has moved closer to taxing cryptocurrency-to-stablecoin transactions after lawmakers narrowly approved a controversial amendment to the country’s 2027 budget. The National Assembly passed the proposal on October 16, 2026, by 38 votes to 37, with 25 abstentions. However, the measure still faces several legislative hurdles before becoming law.

The amendment, introduced by Communist lawmaker Nicolas Sansu, would end the tax deferral currently available when investors exchange cryptocurrencies for qualifying stablecoins. If enacted, the changes would take effect on January 1, 2027.

What France’s Proposed Crypto Tax Would Change

Under existing French tax rules, investors generally trigger capital gains taxes when converting cryptocurrency into traditional currency or purchasing goods. However, exchanges between cryptocurrencies typically qualify for tax deferral.

The proposed amendment would eliminate that exemption for transactions involving qualifying stablecoins under the European Union’s Markets in Crypto-Assets framework.

Consequently, investors could face France’s 31.4% capital gains tax even without withdrawing funds into a bank account.

For example, an investor purchasing Bitcoin for €30,000 and later exchanging it for €100,000 worth of qualifying stablecoins could face approximately €21,980 in taxes.

The amendment would also change how taxable gains are calculated, replacing France’s portfolio-wide acquisition cost method with an asset-specific approach.

Who Supported the Stablecoin Tax Proposal?

Left-wing lawmakers largely supported the amendment, including representatives from France Unbowed, the Socialist Party, and environmentalist groups.

Meanwhile, lawmakers aligned with President Emmanuel Macron and several conservative parties generally opposed the proposal.

The National Rally’s abstentions played a significant role. Of its participating lawmakers, 25 abstained while 10 voted against the amendment.

The narrow result also attracted attention after lawmaker Olivia Grégoire clarified that she intended to vote against the proposal. Although the parliamentary record acknowledged her correction, the official result remained unchanged.

Government officials also expressed concerns about implementation. Public Accounts Minister David Amiel questioned whether authorities could adequately define and monitor stablecoin transactions.

Will France’s Crypto Tax Become Law?

Despite the Assembly’s approval, the amendment does not automatically establish a new tax.

The proposal must survive the remaining budget negotiations, including consideration by the Senate, where lawmakers could revise or remove it.

Industry representatives have warned that taxing stablecoin conversions could encourage investors to use decentralized platforms or offshore exchanges.

For now, France’s existing cryptocurrency tax treatment remains unchanged. Investors must await the final 2027 budget legislation to determine whether stablecoin swaps will become taxable.