France’s National Assembly finance committee backed an amendment on October 7 that would tax swaps of cryptocurrencies, including bitcoin, into stablecoins classified as electronic money tokens under the European Union’s MiCA regulation. Francois Volpeau, head of France at analytics firm Chainalysis, warned that the measure could drive traders toward offshore channels and assets outside EU regulation, according to comments reported by CoinDesk.

The proposal would extend France’s 31.4% tax rate to crypto-to-stablecoin swaps involving those regulated tokens. It forms part of the country’s draft 2027 budget and could take effect on January 1, 2027.

Debate on the budget began in the National Assembly last week. Lawmakers plan to pass the document by December 10.

Offshore trading risk

Swapping one cryptocurrency for another in France typically does not currently create a capital gains tax liability. The 31.4% rate applies when investors convert crypto assets into fiat currency or spend them. The amendment would change that treatment for certain EU-regulated stablecoins.

Volpeau said the proposal could work against the authorities’ goal of bringing more cryptocurrency activity into the regulated financial system. Transactions involving regulated stablecoins are easier to trace than activity conducted through decentralized finance platforms or non-custodial wallets, he said.

“Do we want more taxpayers to declare their assets, or do we want a higher tax rate that will be applied to a base that is increasingly avoiding payment?” Volpeau said.

Wallet reporting and other tax amendments

On October 9, the finance committee backed a separate amendment that would require French taxpayers to report non-custodial cryptocurrency wallets holding at least €100,000, or about $116,000. Noncompliance could result in fines of as much as $11,600.

Volpeau expressed concern about the security of the reported data amid an increase in physical attacks on cryptocurrency holders in France. According to data cited in the report, Europe recorded 39 of the 52 such attacks reported worldwide as of July. France accounted for 33 incidents, or 63.5% of the global total.

Lawmakers also backed a proposal to extend France’s exit tax to crypto assets worth around $900,000. The measure provides for taxation of unrealized gains under rules already applied to wealthy shareholders who move abroad.

Another amendment backed on October 7 would allow cryptocurrency losses to be carried forward for as long as 10 years, bringing their tax treatment closer to the rules for stocks.

France issued warnings in early 2026 to 90 cryptocurrency companies that did not have a MiCA license.

Source: Incrypted