The French National Assembly passed an amendment on October 16 to tax crypto-to-stablecoin conversions. The vote passed with 38 votes in favor, 37 against, and 25 abstentions. If enacted, the new rule will take effect on January 1, 2027.
Under the current proposal, converting cryptocurrencies into fiat-backed stablecoins will trigger a 31.4% tax on profits. This applies to private investors, while professional traders remain subject to different regulations. Simply holding stablecoins will not be taxable.
The government aims to reduce the national budget deficit from 5.4% of GDP in 2026 to 5% by 2027. Lawmaker Nicolas Sansu proposed the measure to prevent investors from deferring taxes by switching assets into stablecoins instead of euros.
The legislative move coincides with widespread civil unrest across France. Protests over living costs and public spending have led to over 2,500 arrests. The government previously expressed concerns that tracking these specific crypto transactions could be complex.
