CoinDesk
French lawmakers are considering a 31.4% capital gains tax on swaps from cryptocurrencies into stablecoins regulated under the EU’s MiCA framework, with the proposed rule set to begin Jan. 1, 2027. Chainalysis France CEO Francois Volpoet warned that taxing regulated stablecoins could push traders toward less transparent, unregulated alternatives.
Why it matters
The proposal would change France’s current treatment of crypto-to-crypto swaps, which generally do not trigger capital gains tax. France currently applies its 31.4% flat rate when investors cash out or spend crypto. Volpoet argued that authorities can more easily monitor transactions involving regulated stablecoins than activity through decentralized finance platforms or self-hosted wallets.
A separate proposal would require taxpayers to declare self-hosted wallets holding at least €100,000 in assets, with fines of up to $11,600 for noncompliance. Volpoet also raised security concerns, citing 33 physical attacks targeting crypto holders in France, out of 52 recorded globally as of July.
Market impact
Other proposals would extend France’s exit tax to crypto holdings worth roughly $900,000 and let investors carry forward crypto losses for up to 10 years. The measures remain proposals, not law: the finance committee rejected the revenue section of the 2027 budget, so the crypto amendments must return for debate in the full National Assembly. A vote on the revenue section was scheduled for Oct. 20.
The stablecoin proposal’s central market risk is a shift in activity away from MiCA-regulated products toward alternatives outside that framework. The eventual impact depends on whether lawmakers resubmit and advance the measures.
Frequently asked questions
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When would France’s proposed stablecoin swap tax take effect?
The proposal would tax swaps into certain EU-regulated stablecoins starting Jan. 1, 2027. It has not become law.
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Why does Chainalysis warn the tax could reduce transparency?
Francois Volpoet warned that traders could shift toward less transparent, unregulated stablecoins. He said authorities can more easily monitor regulated stablecoin transactions than activity through DeFi or self-hosted wallets.
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Which self-hosted wallets would taxpayers have to disclose under a separate proposal?
The proposal would require French taxpayers to declare self-hosted crypto wallets holding at least €100,000 in assets. Fines for failing to comply could reach $11,600.
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What other crypto tax changes are included in the proposals?
Other measures would extend the exit tax to crypto holdings worth roughly $900,000 and allow investors to carry forward crypto losses for up to 10 years.
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Have the proposed French crypto tax measures become law?
No. The finance committee rejected the revenue section of the 2027 budget, and the crypto amendments must be submitted again for debate in the full National Assembly.
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