France’s stablecoin tax proposal could tax crypto-to-stablecoin conversions

Converting Bitcoin into a stablecoin could trigger a tax bill before any euros reach a bank account under France’s stablecoin tax proposal. The National Assembly approved an amendment to the 2027 budget by a single vote that would end tax deferral on gains from those conversions. It is not yet law.

National Assembly backs amendment by 38 votes to 37

The amendment passed with 38 votes in favor, 37 against and 25 abstentions. Nicolas Sansu introduced the measure, identified as Amendment No. 3898, to change how conversions into fiat-linked stablecoins are treated for tax purposes.

Sansu argued that moving from a volatile cryptocurrency into a stablecoin linked to an ordinary currency should receive the same tax treatment as cashing out into that currency.

How France’s stablecoin tax proposal changes conversions

France’s stablecoin tax proposal would make gains taxable when holders exchange cryptocurrency for stablecoins, rather than preserving the existing deferral. The conversion would be treated like a move into fiat currency.

Under the current framework described in the parliamentary debate, exchanging one cryptoasset for another generally does not immediately trigger the same capital gains tax liability as converting into fiat or spending proceeds on goods.

Stablecoins sit across that distinction: they are cryptoassets, but they are designed to track currencies such as the euro or dollar. The amendment would take effect by narrowing the tax benefit of temporarily parking gains there instead of converting them into ordinary money.

No retrospective tax recalculation required for now

The amendment is not enacted tax law, and French crypto holders do not need to recalculate past taxes because of this vote. Approval at this stage does not complete the legislative process.

France’s stablecoin tax proposal still has further parliamentary stages to clear as part of the 2027 budget process.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.