France’s proposed stablecoin tax would apply its 31.4% capital gains rate to swaps into certain EU-regulated tokens from January 1, 2027. But Francois Volpoet, Chainalysis’ CEO for France, warns that taxing those transactions could steer investors toward offshore exchanges and decentralized platforms instead of the regulated financial system.
Key takeaways
The French proposal would tax conversions into MiCA-regulated stablecoins, but exclude USDT, DAI and PAXG.
A separate amendment seeks disclosures for self-hosted wallets worth at least €100,000.
The crypto measures remain proposals and require another parliamentary debate.
According to CoinDesk, the National Assembly’s finance committee backed the stablecoin amendment on October 7, 2026, as part of France’s proposed 2027 budget. The committee subsequently rejected the budget’s revenue section, so the crypto amendments must return for debate before the full National Assembly.
France’s stablecoin tax proposal draws a line between tokens
The amendment would make exchanges of bitcoin and other cryptocurrencies into stablecoins classified as electronic money tokens under MiCA taxable. Crypto-to-crypto exchanges generally do not trigger capital gains tax in France; the existing 31.4% flat rate applies when investors cash out or spend their crypto.
The proposed start date is January 1, 2027. MiCA, the EU’s crypto regulatory framework, took full effect on July 1, 2026, according to the report.
Volpoet said the amendment leaves USDT, DAI and PAXG outside its scope. That distinction means France’s proposed stablecoin tax would cover one regulated category rather than every token investors use when exchanging crypto assets.
Volpoet warns of a shift toward offshore trading
Volpoet warned that the tax could send investors toward DeFi, peer-to-peer transactions and exchanges outside international tax-reporting arrangements. He said authorities find regulated stablecoin transactions easier to monitor than activity involving decentralized platforms or self-hosted wallets.
“Do we want more taxpayers to declare their assets, or a higher tax rate applied to a base that is increasingly evaded?” he asked in an email.
Chainalysis estimates France reported $9.4 billion in taxable onchain crypto activity during 2025, including $2.5 billion in gains.
Volpoet also cited changing European trading volumes as an example of activity shifting after regulatory changes. Between July 2024 and June 2025, EURC volumes increased 2,727%, compared with 86% for USDC.
Wallet disclosures raise security concerns
A separate amendment backed on October 9, 2026, would require French taxpayers to report self-hosted wallets containing at least €100,000 in assets, approximately $116,000. Failure to comply would carry fines of up to $11,600.
Volpoet warned that leaked information about large holdings could expose families to targeted attacks, and called for strict controls over access to disclosure data.
According to Chainalysis, France saw 30 violent attacks recorded during the first half of 2026. Relatives, rather than crypto holders themselves, were the targets in more than 40% of those incidents.
By July 2026, Europe accounted for 39 of 52 crypto-related attacks recorded worldwide. France accounted for 33 incidents, or 63.5% of the global total.
Exit tax, loss relief and the next budget vote
Lawmakers also backed extending France’s exit tax to crypto holdings valued at roughly $900,000. The measure would place unrealized crypto gains under rules already covering wealthy shareholders who relocate abroad.
Another amendment supported on October 7, 2026, would let investors carry crypto losses forward for up to 10 years, bringing their treatment closer to that of stock losses.
None of these measures has become law. The finance committee rejected the 2027 budget’s revenue section by 31 votes to 3, requiring the crypto amendments to be resubmitted for parliamentary debate.
The National Assembly is scheduled to vote on the revenue section on October 20, 2026. Lawmakers have until December 10, 2026, to pass the budget.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.