France Stablecoin Tax Proposal Advances After 38-37 Vote in Parliament
France’s proposed stablecoin tax changes could make cryptocurrency-to-stablecoin conversions taxable events, potentially requiring investors to pay capital gains tax before transferring funds into a traditional bank account. The French National Assembly approved an amendment to the 2027 budget by a narrow margin, but the measure has not yet become law.
The amendment, identified as Amendment No. 3898, passed with 38 votes in favor, 37 against and 25 abstentions. Nicolas Sansu introduced the proposal to change the tax treatment of conversions into stablecoins linked to traditional currencies.
France Stablecoin Tax Proposal Targets Crypto Conversions
Under the proposed rules, investors could face tax liabilities when exchanging cryptocurrencies such as Bitcoin for stablecoins pegged to currencies including the euro or US dollar. The change would remove the existing tax deferral available for certain crypto-to-crypto transactions and treat qualifying stablecoin conversions more like exchanges into fiat currency.
Sansu argued that moving from a volatile cryptocurrency into a stablecoin linked to an ordinary currency should receive the same tax treatment as converting the asset directly into that currency.
The proposal focuses on the distinction between cryptoasset transactions and conversions into traditional money. Under the framework described during the parliamentary debate, exchanging one cryptoasset for another generally does not immediately trigger the same capital gains tax liability as converting cryptocurrency into fiat currency or using proceeds to purchase goods.
Why Stablecoins Could Face Different Tax Treatment
Stablecoins occupy a distinct position in the cryptocurrency market. Although they remain cryptoassets, they are designed to maintain a value linked to traditional currencies, including the euro and the US dollar.
That distinction is central to the proposed amendment. Investors can use stablecoins to move out of volatile cryptocurrencies without necessarily converting their holdings into conventional money. The amendment would narrow the tax deferral associated with that approach by making gains taxable at the point of qualifying crypto-to-stablecoin conversions.
If enacted, the change could affect how French cryptocurrency holders manage profitable positions, particularly when they move funds from volatile assets into stablecoins while remaining within the crypto ecosystem.
Proposal Still Requires Further Legislative Approval
Despite the National Assembly vote, the amendment remains a proposal within France’s 2027 budget process. It must clear further parliamentary stages before it can become enacted tax law.
French cryptocurrency holders therefore do not need to recalculate taxes on past transactions solely because of this vote. The approval does not, by itself, establish a new tax obligation under an enacted law.
The proposal’s eventual status will depend on the remaining legislative process. Until the measure is enacted, the potential tax treatment of crypto-to-stablecoin conversions remains subject to the outcome of that process.
source: en.cryptonomist
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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