38 to 37: France passes it by one vote. From now on, swapping crypto for stablecoins will also incur a 31.4% tax 🦖
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On October 17, France’s National Assembly passed amendment I-3898 during debate on the 2027 Finance Bill. The amendment was proposed by MP Nicolas Sansu. Of the Assembly’s 577 seats, only 100 members voted: 38 in favor, 37 against, and 25 abstentions. It was just one vote away from going the other way.
The amendment aims to close a loophole that has existed for years. Until now, swapping Bitcoin for stablecoins hasn’t counted as cashing out, so it hasn’t been subject to capital gains tax. Many French crypto holders have used USDT and USDC to park their profits, then swapped back into euros when the time was right. The rules are now set to change: every swap from crypto into stablecoins will be taxed at a capital gains rate of 31.4%. If the text passes unchanged, it will take effect on January 1, 2027 ⚖️
The French government’s reasoning is straightforward: stablecoins already serve as a means of payment and a store of value, so they should be taxed like money. The amendment also stresses that it would not create any new burden. What really stings is another set of figures: blockchain analytics firm Chainalysis estimates that 90% of crypto gains in France go undeclared. In 2024, just 24,000 French taxpayers declared approximately $427 million in gains. Compared with the size of the overall market, that reporting rate is practically zero 💶
In my view, the key issue isn’t the 31.4% rate. It’s that France is treating stablecoins as money rather than crypto assets for the first time. Once they’re taxed under the rules for money, every time you park your profits becomes a taxable event. The old strategy of moving into stablecoins during a bear market and cashing out again in a bull market is about to get a lot more expensive.
The second-order effects are more interesting than the tax rate itself. French crypto holders will most likely head in three directions: first, commodity-backed digital assets such as tokenized gold; second, self-custody and cross-border transfers; and third, simply converting back to fiat early and taking profits. For stablecoin issuers, retail demand in the eurozone’s second-largest economy will come under pressure. And with on-chain records, combined with the automatic information exchange under DAC8 and CARF, enforcing this tax will be much easier than many people think.
Of course, this isn’t the final word. The Senate will decide next Tuesday whether to advance the amendment. The government itself opposes it and could also remove the provision outright. The 38-to-37 vote shows that it doesn’t even have consensus in Parliament. There’s still plenty of debate ahead.
Do you think France is closing a loophole, or driving crypto users away? If you were there, would you convert back into euros early, or switch to tokenized gold? Let’s talk in the comments.
Every day, I bring you the latest crypto regulation developments—not just what’s happening, but the reasoning and opportunities behind the headlines 👀🚀
💡 群里更新数据解读
On October 17, France’s National Assembly passed amendment I-3898 during debate on the 2027 Finance Bill. The amendment was proposed by MP Nicolas Sansu. Of the Assembly’s 577 seats, only 100 members voted: 38 in favor, 37 against, and 25 abstentions. It was just one vote away from going the other way.
The amendment aims to close a loophole that has existed for years. Until now, swapping Bitcoin for stablecoins hasn’t counted as cashing out, so it hasn’t been subject to capital gains tax. Many French crypto holders have used USDT and USDC to park their profits, then swapped back into euros when the time was right. The rules are now set to change: every swap from crypto into stablecoins will be taxed at a capital gains rate of 31.4%. If the text passes unchanged, it will take effect on January 1, 2027 ⚖️
The French government’s reasoning is straightforward: stablecoins already serve as a means of payment and a store of value, so they should be taxed like money. The amendment also stresses that it would not create any new burden. What really stings is another set of figures: blockchain analytics firm Chainalysis estimates that 90% of crypto gains in France go undeclared. In 2024, just 24,000 French taxpayers declared approximately $427 million in gains. Compared with the size of the overall market, that reporting rate is practically zero 💶
In my view, the key issue isn’t the 31.4% rate. It’s that France is treating stablecoins as money rather than crypto assets for the first time. Once they’re taxed under the rules for money, every time you park your profits becomes a taxable event. The old strategy of moving into stablecoins during a bear market and cashing out again in a bull market is about to get a lot more expensive.
The second-order effects are more interesting than the tax rate itself. French crypto holders will most likely head in three directions: first, commodity-backed digital assets such as tokenized gold; second, self-custody and cross-border transfers; and third, simply converting back to fiat early and taking profits. For stablecoin issuers, retail demand in the eurozone’s second-largest economy will come under pressure. And with on-chain records, combined with the automatic information exchange under DAC8 and CARF, enforcing this tax will be much easier than many people think.
Of course, this isn’t the final word. The Senate will decide next Tuesday whether to advance the amendment. The government itself opposes it and could also remove the provision outright. The 38-to-37 vote shows that it doesn’t even have consensus in Parliament. There’s still plenty of debate ahead.
Do you think France is closing a loophole, or driving crypto users away? If you were there, would you convert back into euros early, or switch to tokenized gold? Let’s talk in the comments.
Every day, I bring you the latest crypto regulation developments—not just what’s happening, but the reasoning and opportunities behind the headlines 👀🚀