Anouncement
Anouncement
PARIS — In a knife-edge decision, the French National Assembly has voted 38 to 37 to end tax deferrals on cryptocurrency-to-stablecoin transactions starting January 1, 2027.
The move, passed as Amendment I-3898 to the 2027 budget bill, marks a significant shift in European cryptocurrency taxation. It effectively treats trades from volatile crypto assets into fiat-pegged stablecoins as taxable disposal events under France’s 31.4% flat tax rate.
Under France’s current tax framework, crypto-to-crypto trades do not trigger immediate capital gains taxes; taxation is postponed until an investor sells digital assets for fiat currency (such as euros) or spends them on goods and services.
Amendment I-3898 dismantles that deferral whenever an investor swaps into an e-money token (EMT), as defined under Article 3 of the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Because MiCA defines an e-money token as a crypto-asset that references an official currency to maintain a stable value, assets like Circle’s USDC and other regulated fiat-backed stablecoins will no longer serve as a tax-free safe haven for French investors looking to de-risk.
Swaps yielding these tokens will now be subject to the nation’s standard 31.4% flat tax on capital gains.
The measure, introduced by Deputy Nicolas Sansu of the Democratic and Republican Left group, passed with razor-thin margins:
Sansu defended the amendment by arguing that converting crypto into fiat currency triggers immediate taxes, whereas converting into pegged tokens does not, calling it an unintended regulatory loophole. Deputy Charles de Courson supported the measure by citing a parliamentary inquiry showing that in 2021, around 20,000 taxpayers declared €400 million in taxable gains out of an estimated €3.5 billion in actual realized crypto profits.
However, the French government pushed back. David Amiel, Minister for Public Action and Accounts, urged Sansu to withdraw the proposal. Amiel cautioned that authorities currently lack both a unified legal distinction for various stablecoin mechanisms and the technical tracing infrastructure required to track intra-portfolio reallocations.
Philippe Juvin, the Finance Committee’s rapporteur general, noted that while the committee endorsed the amendment, he favored preserving the deferral to account for the inherent volatility of crypto markets.
Beyond ending stablecoin deferrals, the amendment introduces sweeping structural changes to how French investors calculate taxable gains:
In the same session, lawmakers dealt a blow to crypto traders by voting 75 to 18 to reject a 10-year loss carryforward proposal, meaning realized crypto losses will continue to have restricted relief against future gains.
While the vote represents a milestone in tightening digital asset taxation, the measure has not yet been enacted into law.
The amendment sits within the revenue section of the 2027 finance bill, where floor voting was paused with roughly 2,800 amendments still awaiting debate. The bill must complete debates, survive potential constitutional challenges, and pass the broader legislative approval process before taking effect.
If enacted, the January 1, 2027 implementation date will coincide directly with the European Securities and Markets Authority’s (ESMA) timeline for EU-licensed platforms to phase out non-MiCA compliant stablecoins across the European bloc.
