France's National Assembly adopted a budget amendment by a single-vote margin to treat swaps from cryptocurrency into MiCA-regulated stablecoins as taxable sales starting in 2027. The vote, held on Friday, saw 38 deputies support the measure, 37 oppose it, and 25 abstain out of 100 participants. This narrow passage revives a proposal previously rejected when the finance committee discarded the entire budget revenue section earlier in October.
Currently, French holders can move between cryptocurrencies without tax liability unless euros are exchanged. The new amendment specifically targets swaps ending in electronic money tokens regulated under the EU’s Markets in Crypto-Assets (MiCA) framework. From January 1, 2027, gains from these transactions would be subject to France’s flat tax rate, which increased to 31.4% following adjustments to social charges in the 2026 social security financing law. The text also mandates per-coin cost basis calculations rather than portfolio-wide averages, requiring investors to make an irrevocable choice for pre-2027 holdings regarding how costs are documented or allocated.
The amendment was led by Nicolas Sansu of the left-wing GDR group, who argued that stablecoins function as conventional investment vehicles and that current laws allow gains to escape taxation. The government opposed the measure, with Public Accounts Minister David Amiel citing the need for clearer legal definitions and traceability mechanisms. Separately, another committee proposal requiring declaration of self-custodied crypto wallets over €100,000 faces industry backlash due to security concerns. The adopted amendment must still pass the full revenue section vote and subsequent Senate review before becoming law.
This legislative development signals a tightening regulatory stance on crypto asset fungibility within France, aiming to close perceived loopholes where value shifts between volatile assets and stable stores of value without triggering capital gains events. By aligning with precedents set in the UK and Italy, French lawmakers are attempting to standardize tax treatment across jurisdictions, though the reliance on MiCA definitions introduces complexity regarding which specific tokens qualify as taxable swap destinations.
The narrow margin of passage highlights significant political fragility and potential for reversal during the Senate phase. Industry pushback against related reporting requirements underscores growing tensions between privacy advocates and regulators concerned about physical security risks, such as kidnapping. Investors face operational uncertainty as they navigate new cost-basis tracking obligations, while the government’s opposition suggests executive branch resistance may influence final implementation details or enforcement priorities.
