France Wants 31.4% Slice of Your Crypto-to-Stablecoin Sandwich 🥖

France's National Assembly has advanced a proposal to extend the country's 31.4% cryptocurrency capital gains tax to conversions of Bitcoin and other crypto assets into regulated stablecoins, with the measure set to take effect in January 2027 pending further parliamentary debate. Lawmakers approved the change during an October 7 committee review of the government's 2027 budget revenue package, which the finance committee then passed by 31 votes to three.

Under the amendment, the tax would apply when investors convert cryptocurrencies into stablecoins classified as electronic money tokens and subject to the EU's Markets in Crypto-Assets (MiCA) framework. French investors currently pay capital gains tax when selling crypto for fiat currency or when purchasing goods, while transfers between crypto assets generally are not taxable until a taxable event occurs. The proposal would close that gap for swaps into MiCA-compliant stablecoins, bringing them within the existing 31.4% rate rather than introducing a new one.

The stablecoin provisions are part of a broader set of crypto-related measures in the budget bill, which also includes proposals targeting large self-custody wallets, crypto exit taxes, and a ten-year loss carryforward rule. On October 2, Circle called on European regulators to update the conditions applicable to cross-border stablecoin issuers, underscoring the regulatory pressure surrounding MiCA-compliant tokens.

The finance committee's rejection of separate budget revenue measures means the crypto amendments will be re-examined before a full parliamentary vote scheduled for October 20, leaving the final scope and timing of the stablecoin tax subject to change.