France’s National Assembly finance committee has supported a draft budget amendment that would apply a 31.4% tax to certain crypto-to-stablecoin swaps, marking a notable change from the country’s current treatment of most crypto-to-crypto transactions.

The proposal targets swaps into stablecoins classified as electronic money tokens under the EU’s Markets in Crypto-Assets framework, or MiCA. Chainalysis’ France head, Francois Volpeau, warned that the measure could drive activity toward offshore channels and assets outside EU regulation instead of deeper into the supervised financial system.

What the amendment would change

The measure is part of France’s draft 2027 budget, which began debate in the National Assembly last week. Lawmakers are aiming to pass the budget by December 10, and the tax change could take effect on January 1, 2027 if it remains in the final text.

The finance committee approved the amendment on October 7. Under current practice in France, swapping one cryptocurrency for another generally does not create a capital gains tax event. The 31.4% rate usually applies when investors convert crypto into fiat currency or use it for spending. The proposed rule would carve out an exception for swaps into certain EU-regulated stablecoins.

Chainalysis warns of unintended effects

Volpeau said the proposal may work against the stated objective of moving more crypto activity into regulated channels. In comments reported by CoinDesk, he argued that regulated stablecoin transactions are easier to monitor than activity routed through decentralized finance platforms or non-custodial wallets.

His concern is that a tax aimed specifically at MiCA-regulated stablecoins could encourage users to shift toward offshore venues or assets that sit outside the EU regulatory perimeter. In that scenario, authorities could end up with a higher nominal tax rate applied to a smaller and less visible tax base.

Other crypto tax and reporting measures advance

The same committee also backed several other crypto-related amendments. On October 9, it approved a proposal that would require French taxpayers to declare non-custodial wallets holding at least €100,000, roughly $116,000. The amendment provides for penalties of up to $11,600 for failing to comply.

Volpeau also raised concerns about the handling of sensitive wallet data at a time when France has seen a rise in physical attacks targeting crypto holders. The figures cited in the report said that, as of July, Europe accounted for 39 of 52 such incidents recorded worldwide, with 33 of them occurring in France.

Lawmakers additionally supported extending France’s exit tax to crypto assets worth around $900,000, applying taxation to unrealized gains under a framework already used for wealthy shareholders who leave the country. A separate amendment approved on October 7 would let taxpayers carry forward crypto losses for as long as 10 years, bringing the treatment closer to the rules used for stocks.

Broader regulatory backdrop

The budget debate comes as France continues to tighten oversight of the digital asset sector. Earlier in 2026, the country issued warnings to 90 crypto companies that did not hold a MiCA license.

For now, the stablecoin tax remains a proposal within the wider 2027 budget process rather than a final rule. The next confirmed step is the continued National Assembly debate ahead of the planned budget deadline of December 10, which will determine whether the amendment survives in its current form before a possible start date at the beginning of 2027.

Source: incrypted.com