French lawmakers approve tax on cryptocurrency exchange for stablecoins

The National Assembly of France has approved an amendment that will require private investors to pay tax when exchanging cryptocurrency for fiat-backed stablecoins, even if the funds are not withdrawn in euros. The amendment was adopted on October 16 with a narrow margin: 38 deputies voted in favor, 37 against, and 25 abstained. The new rules could come into effect on January 1, 2027. The change eliminates the tax deferral for cryptocurrency-to-stablecoin exchanges, moving the tax point to an earlier stage. Currently, tax arises when exiting crypto assets into fiat. Amid widespread protests in France demanding higher wages and improved public services, the budget issue has become particularly pressing. The author of the amendment is Deputy Nicolas Sansu, who believes that investors should not be able to defer tax payments when exchanging Bitcoin for stablecoins. Profits from cryptocurrency transactions are already taxed at a rate of 31.4%. For example, if an investor buys Bitcoin for 10,000 euros and then exchanges it for a stablecoin, tax will be levied on the profit of 10,000 euros, amounting to 3,140 euros. Exception: holding stablecoins is not considered a taxable event. The bill must undergo further review in parliament.

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