By a paper-thin margin of just 38 to 37 votes, France’s National Assembly voted on October 16 to move forward with a proposal that could hit crypto-to-stablecoin swaps with a 31.4% capital gains tax starting in January 2027. In a chamber with 577 seats, only 100 people showed up to vote, and 25 members abstained from voting.
If the proposal clears its remaining hurdles, converting cryptocurrency into a MiCA-classified stablecoin will trigger a 31.4% capital gains tax from January 1, 2027. That rate breaks down as 12.8% income tax and 18.6% social charges. Under rules in place since 2019, swapping one crypto asset for another without converting to euros didn’t trigger a tax event at all. The amendment removes that deferral specifically for regulated stablecoins under MiCA. Under the new rule, moving from Bitcoin into a stablecoin counts as cashing out for tax purposes, even if no euros ever change hands.
The vote is not law yet. A full revenue vote is scheduled for November 3, followed by a full Assembly vote on November 17, and then the Senate. France’s Public Accounts Minister David Amiel asked for the amendment to be withdrawn before the vote, saying the country needed to define stablecoins properly before taxing them. The Assembly voted anyway. One vote the other way and none of this would be a story.
The concern the amendment is trying to address is straightforward: stablecoins let French investors park gains in dollar-denominated assets indefinitely without ever triggering tax. Chainalysis France director François Volpoet said it publicly last week that the rule could push investors toward DeFi platforms, peer-to-peer markets, and offshore exchanges that sit outside international tax-reporting arrangements. The French government is trying to close the loophole. Whether it improves or worsens the problem depends on your view of how tax-driven behaviour actually works.
France is not moving in isolation either. Germany is proposing to scrap its one-year tax-free holding rule in favour of a flat 25% rate. Italy raised its crypto capital gains levy from 26% to 33% in its 2025 budget. MiCA was supposed to create a predictable operating environment across the EU. Member states layering divergent tax treatment on top of it is a different kind of problem.
Other stories worth your radar this week:
- JPMorgan Asset Management included Bitcoin in its long-term return forecasts for the first time in over 30 years, projecting a 10% compound annual return over the next decade, ahead of U.S. stocks at 7.5% and gold at 5.5%. The bank still describes Bitcoin as speculative, assigns it 55% annualized volatility, and has not added it to its standard portfolio allocations. Worth noting both things.
- Ripple submitted comments supporting the SEC’s proposed crypto regulatory framework and pushed for clearer standards for token classification. After years of litigation with the agency, publicly supporting its rulemaking is a different posture entirely.
- Vitalik Buterin proposed EIP-8288, which would let Ethereum smart contracts verify cryptographic signatures from external systems without recomputing them on-chain. Early stage, but points toward a leaner execution model.
- Norway aligned with the EU’s latest sanctions package against Russia, extending restrictions to crypto services and closing a potential gap that Russian entities could have used to route around EU measures through Norwegian platforms.
- Blockchain.com and Binance US are pursuing US licenses to offer prediction markets as crypto trading volumes slow, a month after South Korean police booked 26 Polymarket users for illegal gambling.
One vote in the French National Assembly moved crypto-to-stablecoin conversions closer to a 31.4% tax bill, and JPMorgan included Bitcoin in a long-term forecast for the first time in 30 years. If you missed anything, here’s your catch-up.
Lead Story of the Week:
France Sets 31.4% Tax on Crypto-to-Stablecoin Swaps in 2027 (Read More)
France’s National Assembly passed Amendment I-3898 by 38 votes to 37, a measure that could impose a 31.4% capital gains tax on crypto-to-stablecoin conversions from January 2027. (Read The Full Story)
Market Highlights
- JPMorgan Expects Bitcoin to Outperform Stocks and Gold
J.P. Morgan forecasts Bitcoin will deliver 10% annual returns over the next 10 to 15 years. (Read More)
- Ripple Backs SEC Crypto Rules, Seeks Clearer Token Status
Ripple backs the SEC’s proposed crypto rules, seeking clear standards for classifying crypto as securities. (Read More)
- Vitalik Buterin Proposes New Ethereum Cryptography Approach
Vitalik Buterin proposes EIP-8288, letting devices handle cryptography and send Ethereum proof of results. (Read More)
- Norway Adopts EU Sanctions to Block Russian Crypto Evasion
Norway adopts the EU’s sanctions package against Russia, targeting banks, oil exports, and crypto services. (Read More)
Latest News For You
Crypto Exchanges to Offer Prediction Markets to US Markets (Read More)
Blockchain.com and Binance US are pursuing US licenses to launch prediction markets as crypto trading slows. (Read More)
Market Movers
Top Gainers 📈
- Yellow (YELLOW) +306.52%
Yellow (YELLOW) is rising due to a proposal for an XRP Ledger AI agent trust layer that uses YELLOW for fees.
Top Losers 📉
- Manadia (UMXM) −58.02%
Manadia (UMXM) is dropping after a surge due to profit-taking, shallow liquidity, and waning buying momentum.
Source: CoinGecko
Project Spotlight
Bitget Acquires Thai Exchange Weeks After $388M Hack
Bitget has agreed to acquire GMO-Z.com Cryptonomics, a licensed cryptocurrency exchange and brokerage based in Bangkok, Thailand. Through its affiliate, BTGT Management (Thailand) Ltd., Bitget will purchase all shares in the company from Japan’s GMO Internet and its subsidiary, GMO-Z.com Holdings. The companies look to complete the deal by October 31, 2026, subject to approval from Thailand’s Securities and Exchange Commission. (Read More)
Disclaimer: This roundup is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence
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