France Weighs Stablecoin Tax as Part of 2027 Budget

France is considering a series of strict cryptocurrency tax amendments within its upcoming 2027 budget, including a proposal to tax crypto-to-stablecoin swaps and new reporting requirements for self-hosted wallets. While the finance committee initially rejected the broader revenue section, the debated measures point to a shifting regulatory landscape that has drawn warnings from industry analysts regarding potential trader migration to offshore platforms.

Proposed Stablecoin and Wallet Rules

Lawmakers in the National Assembly have been debating the budget proposals, which include an amendment adopted by the finance committee on October 7. This change would apply France's existing 31.4% flat tax rate to exchanges involving European Union-regulated stablecoins classified as electronic money tokens under MiCA rules. Currently, swapping one digital asset for another generally avoids capital gains taxation in the country. Additionally, a separate committee-backed amendment from October 9 would mandate the declaration of private digital asset storage tools holding at least €100,000, carrying penalties reaching roughly $11,600 for non-compliance. Another measure seeks to incorporate unrealized digital asset gains into the national exit tax for holdings valued around $900,000, while a different provision would permit a 10-year loss carry-forward period.

Industry Concerns and Legislative Hurdles

The proposed expansion of capital gains rules has raised alarms among compliance experts. Francois Volpoet, who leads operations for Chainalysis in the country, cautioned that placing extra burdens on compliant instruments could inadvertently push market participants toward decentralized protocols or non-compliant alternatives that offer less visibility to authorities. Despite committee approval for several specific amendments, the finance committee rejected the revenue portion of the budget by a vote of 31 to 3. Consequently, lawmakers must re-submit the digital asset provisions for ongoing debates in the full chamber, with a scheduled vote on the revenue section set for October 20.

Broader European Regulatory Context

Historically, European jurisdictions have taken varied approaches to digital asset taxation as regulatory frameworks mature. While France and other regional peers such as Germany and Italy maintain capital gains levies exceeding 25%, other nations are moving in contrasting directions. Greece, for instance, recently published a draft bill introducing a much lower 10% capital gains tax on cryptocurrency. These contrasting policy directions highlight the fragmented regulatory environment across the continent as local lawmakers attempt to balance state revenue goals with the competitiveness of their domestic financial sectors.

Market Outlook and Unanswered Questions

As the National Assembly prepares for upcoming legislative votes, market participants are watching to see whether the rejected fiscal package will return with modifications or if individual crypto provisions will survive the parliamentary process. It remains uncertain whether lawmakers will heed warnings from analytics firms about driving capital toward unregulated products. Observers should monitor the legislative debates leading up to the December 10 deadline for final budget approval to understand how compliance obligations for French traders might evolve.