France's National Assembly narrowly voted to impose a 31.4% flat tax on crypto-to-stablecoin swaps starting January 1, 2027, closing a tax deferral loophole.
DeFi & Yields ·
France's National Assembly approved amendment I-3898 by a margin of 38 to 37 on Friday, with 25 abstentions, to eliminate tax deferral treatment for crypto-to-stablecoin conversions. Beginning January 1, 2027, gains from swapping cryptocurrency into e-money tokens—as defined under the Markets in Crypto-Assets Regulation—will face the 31.4% flat tax already applied to direct crypto-to-euro disposals. Deputy Nicolas Sansu, who filed the measure, characterized the current treatment as a legal gap: investors could defer taxation by converting to stablecoins but faced immediate taxation on euro sales.
The amendment rewrites cost-basis calculation for French crypto investors, shifting from portfolio-wide valuation to specific asset tracking. For holdings predating 2027, investors must choose once between actual per-asset cost and a pro-rata allocation based on total portfolio cost at December 31, 2026. The government, represented by Minister David Amiel, opposed the amendment, arguing France first required formal stablecoin definitions and the infrastructure to monitor such reallocations. Finance committee rapporteur Philippe Juvin backed the text but personally favored maintaining the deferral owing to crypto's volatility.
The amendment remains pending as part of the 2027 budget bill. The floor vote on the revenue section, originally scheduled for Tuesday, was postponed with over 2,800 amendments still pending examination. In the same sitting, deputies rejected a proposed 10-year loss carryforward by a vote of 75 to 18.