French Parliament Backs Measure Imposing 31% Capital Gains Levy on Stablecoins
A French legislative amendment seeking a 31% flat capital gains tax on stablecoin transactions has advanced toward implementation for January 2027.
The French parliamentary budget committee has taken a firm step toward reshaping the national tax framework by approving an amendment introducing a France crypto tax amendment on stablecoin swaps. The measure specifically targets transactions involving assets compliant with European Union regulations, proposing to eliminate long-held tax exemptions on digital asset conversions.
According to CoinDesk, the legislative initiative, designated as Amendment I-3898, targets MiCA-compliant single-currency stablecoins by applying a standard 31% capital gains levy on previously deferred swap transactions starting in January 2027. Under existing rules, swapping volatile tokens into stablecoins did not trigger immediate capital gains tax obligations until funds were transferred out to traditional fiat.
Backers of the legislation argue that single-currency digital assets function identically to legal tender substitutes, warranting immediate taxation at the point of exchange to boost domestic fiscal revenue. Conversely, digital asset industry representatives warn that removing the deferral could severely complicate portfolio management, creating accounting burdens for active digital asset traders.
The measure must undergo additional votes across the broader parliamentary assembly before becoming final state law. Traders and institutional market makers will monitor the legislative timeline closely to assess whether amendments will be introduced to ease reporting requirements prior to 2027.
Key takeaways
- French lawmakers approved Amendment I-3898 to impose a 31% tax rate on stablecoin swaps.
- The proposed framework eliminates existing capital gains tax deferrals beginning in January 2027.
- The rule specifically affects swaps into stablecoins compliant with the EU MiCA framework.