France Proposes Tax on Crypto-to-Stablecoin Trades

What Is France Proposing for Crypto Taxes?

French lawmakers are moving to close what they see as a tax loophole for cryptocurrency traders. On October 10, 2026, the French National Assembly Finance Committee backed Amendment I-CF1826.

This proposal introduces capital gains taxes on transactions where investors swap any cryptocurrency into stablecoins. If fully approved, the rule will take effect in January 2027.

Closing the Stablecoin Tax Loophole

Under current French tax rules, capital gains taxes apply only when an investor sells crypto for traditional fiat currency, like Euros.

Exchanging one crypto token for a stablecoin pegged to fiat money remains untaxed until the funds leave the crypto ecosystem. Lawmakers argue this setup creates an unfair tax deferral.

The Lawmaker Perspective

MP Nicolas Sansu introduced the amendment. He explained that stablecoins are no longer just temporary holding assets. Instead, they operate as mainstream financial tools.

Investors use stablecoins to purchase goods, pay service providers, and trade other tokens. Because of this, Sansu believes they should follow standard tax rules.

By ultimately escaping the flat tax, we deprive ourselves of a valuable tax resource that does not create any new burden: it is a simple application of the already existing tax law to a case that had not been taken into account.

Sansu also noted that other European nations, including Italy and the United Kingdom, already regulate and tax stablecoins similarly.

Strong Pushback From Crypto Leaders

The French crypto community has reacted strongly against the proposal. Industry leaders argue that the change removes essential flexibility for everyday investors.

Owen Simonin, founder and CEO of crypto platform Meria (also known online as Hasheur), voiced severe concern over the proposal.

He pointed out that stablecoins allow investors to protect gains from volatility without generating an immediate tax event.

Stablecoins were the rest stop when an investor stepped out of the highly volatile crypto market before jumping back in later. Now that rest stop comes with a fee?

Next Steps and Additional Proposals

The proposal is not final law yet. It faces a crucial vote in the general hemicycle of the National Assembly on October 13, 2026.

Lawmakers will also evaluate other controversial rules during the session. These include a requirement to declare self-custody wallets holding over 100,000 euros in crypto.

Security Concerns in the Region

Alongside regulatory debates, French crypto users face rising security threats. Owen Simonin recently warned about an increase in fraudulent support call scams.

Following major local data leaks, scammers have been impersonating support staff to target crypto holders. Investors are urged to remain cautious and verify all incoming communications.