France's National Assembly has narrowly approved a controversial amendment to the country's 2027 budget that would expose cryptocurrency-to-stablecoin trades to capital gains taxation. The proposal passed on October 16, 2026, by 38 votes to 37, with 25 abstentions, though the measure still faces several legislative hurdles before becoming law.

The amendment, introduced by Communist lawmaker Nicolas Sansu, would end the tax deferral currently available when investors exchange cryptocurrencies for qualifying stablecoins — tokens pegged to traditional currencies that are widely used as a trading intermediary within crypto markets. If enacted, the changes would take effect on January 1, 2027.

What the Proposed Change Would Do

Under existing French tax rules, investors generally trigger capital gains taxes when converting cryptocurrency into traditional currency or purchasing goods. Exchanges between cryptocurrencies, however, typically qualify for tax deferral.

The amendment would eliminate that exemption for transactions involving stablecoins that qualify under the European Union's Markets in Crypto-Assets framework, the bloc's regulatory regime for crypto-assets and stablecoin issuers. As a result, investors could owe France's 31.4% capital gains tax even without withdrawing funds into a bank account, making the act of shifting from a volatile token into a stablecoin itself a taxable event.

For example, an investor who purchased Bitcoin for €30,000 and later exchanged it for €100,000 worth of qualifying stablecoins could face approximately €21,980 in taxes. The amendment would also alter how taxable gains are calculated, replacing France's portfolio-wide acquisition cost method with an asset-specific approach, under which each cryptocurrency's own purchase price determines its taxable gain.

A Narrow and Contentious Vote

Left-wing lawmakers largely backed the amendment, including representatives from France Unbowed, the Socialist Party, and environmentalist groups. Lawmakers aligned with President Emmanuel Macron and several conservative parties generally opposed it.

Abstentions from the National Rally proved decisive: of the party's participating lawmakers,25 abstained while 10 voted against the amendment.

The one-vote margin drew further attention after lawmaker Olivia Grégoire clarified that she had intended to vote against the proposal. Although the parliamentary record acknowledged her correction, the official result remained unchanged.

Government officials also raised implementation concerns. Public Accounts Minister David Amiel questioned whether authorities could adequately define and monitor stablecoin transactions — a practical question for any eventual enforcement of the tax.

What Comes Next

Approval by the Assembly does not automatically enact the new tax. The proposal must survive the remaining budget negotiations, including consideration by the Senate, where lawmakers could revise or remove it.

Industry representatives have warned that taxing stablecoin conversions could push investors toward decentralized platforms or offshore exchanges.

For now, France's existing cryptocurrency tax treatment remains unchanged. Investors must wait for the final 2027 budget legislation to determine whether stablecoin swaps will become taxable — with the Senate's stance and the fate of the January 1, 2027 effective date among the details to watch as negotiations continue.