INTEL: French lawmakers approve a proposal to tax crypto-to-stablecoin conversions at 31.4% starting
French lawmakers have approved an amendment to the country’s 2027 budget that would impose capital gains tax on cryptocurrency profits when investors convert their holdings into stablecoins.
The amendment passed the National Assembly by a narrow margin of 38 votes to 37 on October 20.
Under the proposal, converting cryptocurrencies such as Bitcoin or Ethereum into stablecoins would become a taxable event starting in 2027. Gains would generally be subject to France’s 31.4% flat tax rate.
Currently, French investors can exchange cryptocurrencies for other digital assets without immediately triggering capital gains tax. Taxation generally occurs when assets are converted into traditional currencies or used for purchases.
The proposed change would remove that tax deferral for stablecoin conversions, potentially affecting how French investors manage trading profits and move funds between cryptocurrencies.
The amendment has passed a parliamentary vote but still requires approval through the remaining legislative process before becoming law.
