Proposed French tax on regulated stablecoins could drive crypto traders offshore
France is considering a new tax on regulated stablecoins as part of its 2027 budget, which could lead traders to move to offshore or unregulated platforms. The proposal also includes stricter reporting requirements for self-hosted crypto wallets.
Why it matters
This highlights the tension between regulatory oversight of digital assets and the risk of driving capital into less transparent, decentralized environments.
The proposal is part of France's 2027 budget , which lawmakers began debating last week in the National Assembly and have until Dec. 10 to pass.
An amendment adopted by the National Assembly’s finance committee on Oct. 7 would make it a taxable event when investors exchange cryptocurrencies such as bitcoin for stablecoins classified as electronic money tokens under the EU’s MiCA regulation, which came into full force on July 1 .
Swapping one crypto for another generally does not trigger capital gains tax in France. The proposed changes would tax swaps into certain EU-regulated stablecoins starting Jan. 1, 2027. France currently applies a 31.4% flat tax to crypto gains when investors cash out or spend their holdings.
The distinction is critical because the proposal targets a category of stablecoins subject to EU rules, potentially incentivizing traders to use alternatives outside that category.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in