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France Weighs 31.4% Tax on MiCA Stablecoin Swaps
Chainalysis warns proposed 2027 budget measure could push traders toward offshore channels
TL;DR
- France is considering applying its 31.4% crypto capital gains tax to swaps into certain MiCA-regulated stablecoins from Jan. 1, 2027.
- Chainalysis warned the measure could push traders toward DeFi, peer-to-peer markets and offshore exchanges.
- The proposals have not become law and must return to the full National Assembly after a finance committee vote.
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French lawmakers are considering making swaps from cryptocurrencies into certain European Union-regulated stablecoins taxable under France's 31.4% crypto capital gains regime from Jan. 1, 2027. The measure is part of the government's proposed budget and remains a proposal rather than enacted law.
The National Assembly's finance committee adopted the amendment on Oct. 7. It would treat exchanges from cryptocurrencies such as Bitcoin into stablecoins classified as electronic money tokens under the EU's Markets in Crypto-Assets regulation, or MiCA, as taxable events. Crypto-to-crypto swaps generally do not trigger capital gains tax in France, while the country currently applies the flat rate when investors cash out or spend their holdings. MiCA came into full force on July 1.
The measure sits inside France's 2027 budget. Lawmakers have until Dec. 10 to pass the budget.
Chainalysis Warns Trading Could Move Offshore
Francois Volpoet, Chainalysis' CEO for France, warned that taxing regulated stablecoin transactions could undermine efforts to move more crypto activity into channels authorities can monitor.
"Do we want more taxpayers to declare their assets, or a higher tax rate applied to a base that is increasingly evaded?" Volpoet said. He said regulated stablecoin transactions are easier for authorities to monitor than activity through decentralized finance platforms or self-hosted wallets.
Volpoet said investors could instead move toward DeFi, peer-to-peer trading and exchanges outside international tax-reporting arrangements. The amendment would target MiCA-compliant stablecoins while leaving tokens including USDT, DAI and PAXG outside its scope.
Chainalysis cited the following figures while discussing France's crypto market and shifts in regulated stablecoin activity:
Volpoet said the onchain figures do not measure how much trading would ultimately be affected by the proposed tax.
Wallet Disclosure and Other Crypto Tax Measures
France's finance committee also backed several other crypto-related amendments:
Volpoet raised security concerns around wallet disclosures. As of July, Europe had recorded 39 of 52 physical attacks on crypto holders worldwide, with France accounting for 33 incidents, or 63.5% of the global total. Chainalysis separately documented 30 violent attacks in France during the first half of 2026, with more than 40% targeting relatives of crypto holders.
The finance committee later rejected the revenue section of the government's budget by 31 votes to 3, requiring the crypto amendments to be submitted again to the full National Assembly. A vote on the revenue section is scheduled for October 20.
France's proposals come as Greece prepares a draft 10% capital gains tax on cryptocurrency. Germany, France and Italy are setting or planning crypto capital gains rates above 25%.
This article has been refined and enhanced by ChatGPT.
