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Proposed French tax on regulated stablecoins could drive crypto traders offshore
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- DeepHorus
French lawmakers are debating a 31.4% capital gains tax on crypto swaps into EU-regulated stablecoins. The measure is part of France’s 2027 budget, which must pass by Dec. 10. An amendment adopted by the finance committee on Oct. 7 would apply from Jan. 1, 2027.
Today, swapping one crypto for another generally avoids French capital gains tax. France imposes a 31.4% flat tax only when investors cash out or spend crypto. The proposal targets stablecoins classified as electronic money tokens under MiCA, fully effective since July 1.
Chainalysis France CEO Francois Volpoet warned the tax could push traders to unregulated stablecoins or offshore channels. He said regulated stablecoin transactions are easier to monitor than DeFi or self-hosted wallet trades. “Do we want more taxpayers to declare their assets, or a higher tax rate applied to a base that is increasingly evaded?” he told CoinDesk.
A second amendment, backed Oct. 9, would require taxpayers to declare self-hosted wallets holding at least €100,000, about $116,000. Fines could reach $11,600. Volpoet cited security risks, noting France accounted for 33 of 52 global physical crypto attacks as of July, or 63.5%.
Lawmakers also backed extending France’s exit tax to crypto holdings worth roughly $900,000. Another amendment would let investors carry forward crypto losses for up to 10 years. The finance committee rejected the 2027 revenue section 31–3, so the crypto amendments must return to the full National Assembly. A vote is scheduled for Oct. 20.
None of the measures have become law. France’s direction contrasts with Greece, which is preparing a 10% capital gains tax on cryptocurrency under a draft bill published last week. The divide shows how European crypto policy is fragmenting.
