France Assembly Adopts 31.4% Tax Proposal for Crypto-to-Stablecoin Gains

France’s National Assembly adopted a budget amendment Oct. 16 that would apply a 31.4% capital-gains tax to qualifying crypto-to-stablecoin conversions, though the measure is not law.

The proposal covers exchanges of crypto assets for certain electronic money tokens, a category that includes some stablecoins regulated under European Union rules. The 31.4% rate is France’s standard flat tax on private investors’ capital gains; it would apply to the gain, not the total value exchanged. The measure follows the Finance Committee’s earlier approval of a similar proposal and would apply to transactions beginning Jan. 1, 2027.

Separate proposals remain pending. One would tax latent gains on household crypto holdings above €800,000 when a taxpayer moves their tax residence out of France, provided they had been a French tax resident for at least six of the previous 10 years. Another would require year-end reporting of at least €100,000 in directly held crypto assets.

The Assembly rejected a related floor amendment that would have allowed crypto losses to be carried forward for 10 years. The adopted stablecoin-tax amendment remains part of the proposed 2027 budget, which is still under consideration.