France's Assembly backs stablecoin swap tax by one vote

France's National Assembly has narrowly approved an amendment that would make swapping crypto into regulated stablecoins a taxable event from 1 January 2027. Amendment I-3898 to the 2027 finance bill passed 38 votes to 37 with 25 abstentions on Friday, 16 October, with only about 100 of the chamber's 577 deputies taking part, according to the official vote record and Bitcoin.com News, which reported the result.

What the amendment changes

• Today: in France, exchanging one crypto-asset for another is generally tax-deferred; capital gains tax usually applies only when holders cash out into euros or spend.
• Proposed: that deferral would no longer apply when the asset received is an electronic money token (EMT) as defined by the EU's MiCA regulation — in practice, fiat-pegged stablecoins such as USDC or EURC.
• Rate: gains (not the full amount swapped) would be taxed under France's 31.4% flat tax.
• Cost basis: the amendment text also moves to a weighted-average acquisition price per crypto-asset and offers transitional options for holdings bought before 2027.

The proposal was tabled by left-wing MP Nicolas Sansu and 16 co-signatories, who call the current treatment a loophole: stablecoins can be used to pay and invest much like money, they argue, yet conversions into them escape the flat tax. They add that the UK and Italy have already moved in this direction. It is the same measure the finance committee adopted earlier this month, which we covered when it was first floated.

Why it is contested

Critics say the rule would take away a common way to step out of volatile coins without triggering tax, and could steer French traders toward offshore or unregulated dollar tokens — the opposite of what MiCA's e-money rules intended. USDC was recently classed as the EU's first significant e-money token. Bitcoin.com News also cites Chainalysis estimates that around 90% of French crypto gains go undeclared. New to the topic? Read what a stablecoin is.

Not law yet

The government opposes the amendment, and French media report it could still be dropped from the final budget. The Assembly is due to vote on the bill's revenue section on Tuesday, 20 October before it moves to the Senate, which can rewrite or reject it.