France’s National Assembly passed Amendment I-3898 by a narrow vote of 38 to 37. If the legislation takes effect on January 1, 2027, traders could face a 31.4% capital gains tax when they sell cryptocurrency for stablecoins.
Previously, converting crypto into a digital dollar was entirely tax-free in the country, with investors paying tax only when they cashed out into physical euros.
🚨BREAKING: 🇫🇷 FRANCE’S PARLIAMENT JUST ADVANCED A 31.4% CAPITAL GAINS TAX ON $XRP AND CRYPTO SWAPS TO STABLECOINS
ONE OF EUROPE’S HIGHEST CRYPTO TAXES
THEY WANT TO TAX EVERY CONVERSION EVEN IF YOU NEVER SELL TO FIAT
THIS IS A DIRECT ATTACK ON HOLDERS https://t.co/ymMcwQJHOB
— RayJnr (@RayJnr_1) October 21, 2026
This legislative focus on digital assets comes as the nation faces heavy civil protests over public budget cuts, sparking intense backlash from citizens who feel the government has completely misplaced its priorities.
Online traders expressed frustration with the proposed tax. @User 0x604vc pointed out that crypto-to-crypto transactions are already taxable in the US and Canada, suggesting that French traders have previously enjoyed more favourable tax rules.
@WatcherGuru In US and Canada swapping crypto for any other crypto is a taxable event, so u guys in france had it pretty good.
— Max Payne (@0x604vc) October 20, 2026
@Itsariggedgame criticized French lawmakers for focusing on crypto taxation amid the country’s other problems.
France is being destroyed and burned down and their parliament focuses on passing taxation on crypto. This tells you what’s coming
— Itsariggedgame (@itsariggedgame) October 21, 2026
Meanwhile, @Theomovez argued that the government may be concerned about stablecoins becoming an alternative to traditional bank deposits, which could reduce its control over how people hold their money.
@WatcherGuru They’re doing this because stablecoins are replacing the money people hold in bank accounts and they have no control over them. 😂
— Theo (@theomovez) October 20, 2026
READ ALSO: France Increases Crypto Security Response After Kidnapping Cases Surge in 2026
France’s proposed crypto tax could push investors toward decentralized platforms
France’s proposed 31.4% capital gains tax on certain crypto-to-stablecoin swaps could encourage investors to move their trading activity away from regulated exchanges and toward decentralized exchanges (DEXs) such as Uniswap, offshore platforms such as KuCoin, and peer-to-peer trading networks such as Bisq.
Some investors may also consider stablecoins or other crypto-assets that fall outside the amendment’s definition of regulated electronic money tokens. However, the tax treatment depends on the asset and the final wording of the law. Decentralized exchanges such as Uniswap allow users to swap tokens through smart contracts without necessarily completing the identity checks required by centralized exchanges.
European countries may copy France crypto-to-stablecoin tax
Over the last three years, European Union leaders have promoted the region as a safe place for crypto businesses under a shared set of rules called the Markets in Crypto-Assets Regulation (MiCA). The framework was designed to give every country on the continent the same, predictable operating environment.
If the French parliament successfully taxes stablecoin trades, neighbouring nations may copy the same legislative playbook.
Some European countries are already changing their crypto tax rules. Germany is moving to scrap its “hold for a year, and it’s tax-free” rule and replace it with a proposed 25 per cent flat tax on digital assets. Also, Italy has already moved in its 2025 budget law to raise its crypto capital gains tax rate from 26 per cent to 33 per cent.
In another development, French crypto platform Coinhouse has received authorization under the EU’s Markets in Crypto-Assets (MiCA) framework through France’s financial regulator Autorité des Marchés Financiers, placing it among the early firms operating under the new European rulebook.
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