France’s National Assembly has approved an amendment that would make certain crypto-to-stablecoin swaps taxable starting January 1, 2027, in a very close vote during the budget process. The proposal passed 38 votes to 37, with 25 abstentions, among 100 participating deputies.

If enacted, the measure would treat swaps from crypto assets into MiCA-regulated stablecoins as taxable sales under France’s flat tax regime. That would mark a change from the current system, under which investors can generally move between crypto assets without triggering tax as long as they do not exchange into euros.

What the amendment would change

The proposal focuses on swaps into stablecoins covered by the EU’s Markets in Crypto-Assets framework, specifically tokens pegged to a single official currency such as the euro or the U.S. dollar. Under the amendment, converting a crypto asset into one of those stablecoins would no longer be treated like a tax-neutral crypto-to-crypto exchange.

Instead, the transaction would be treated as a sale for tax purposes. The gain would be based on the value of the stablecoins received minus the purchase cost of the crypto asset given up. That gain would then fall under France’s 31.4% flat tax rate, following recent increases in social charges on capital income.

How gains would be calculated

The amendment sets out a coin-by-coin approach rather than a broad portfolio method for these transactions. For each asset sold into a qualifying stablecoin, the taxable amount would be determined from the received stablecoin value and the acquisition cost of the asset surrendered in the swap.

For crypto held before the rules take effect, the text provides an irrevocable choice. Holders would be able either to document the actual purchase cost of each asset or to allocate total acquisition costs across their holdings as of December 31, 2026.

Why supporters and critics disagree

The authors of the amendment argue that stablecoins can serve a role similar to more conventional investments and that gains shifted into them currently avoid the flat tax when no euro conversion takes place. From that perspective, the proposal is meant to close what they see as a gap in the existing system.

Opposition has also surfaced. Critics have pointed to concerns raised by the government over legal definitions and the practical difficulty of tracing these transactions, indicating that the measure may face scrutiny beyond the Assembly floor vote.

What happens next

The amendment has not yet become final law. It still must pass through the rest of France’s budget process before it could take effect.

The broader debate is also tied to another proposal in the same budget track: a requirement to report wallet holdings above €100,000. That separate idea has already prompted backlash from the crypto industry, suggesting that digital-asset taxation and reporting rules will remain a contested issue as lawmakers continue reviewing the budget package.

Source: decrypt.co