France's National Assembly approved an amendment on October 16 that would tax certain crypto-to-stablecoin conversions, squeaking through by a single vote, 38 to 37, with 25 abstentions. The measure, introduced by left-wing lawmaker Nicolas Sansu, targets investors who would otherwise defer tax by swapping Bitcoin into dollar-backed tokens instead of euros. It would apply from January 1, 2027, but only if the wider budget becomes law.
A one-vote margin in a hostile chamber
The amendment's path is anything but secure. The government opposed it, warning that tracking these transactions could prove complicated. With 25 lawmakers abstaining and the margin at one, the proposal still faces further parliamentary scrutiny before it can take effect. The vote landed in the middle of a budget fight that's already spilling into the streets.
Sansu's argument is straightforward: an investor shouldn't escape immediate taxation simply by routing gains through a stablecoin rather than a bank account. France already taxes private crypto profits at a standard 31.4% rate, and most crypto-to-crypto exchanges currently defer that bill. The amendment would end the deferral for conversions into qualifying fiat-backed stablecoins.
The €3,140 example
The numbers here are easy to follow. An investor who buys Bitcoin for €10,000 and watches it rise to €20,000 could trigger €3,140 in tax on the €10,000 profit by swapping into a qualifying stablecoin — without ever withdrawing a euro. That's the scenario the amendment is built around, and it's the one crypto holders in France will be running through their own portfolios this week.
There are limits. Simply holding stablecoins would not trigger the proposed tax. Ordinary crypto-to-crypto swaps generally keep their deferral. The tax would apply to French tax-resident individuals investing privately; professional traders follow different rules. The government's concern about tracking these transactions is a practical one, not a philosophical objection to taxing gains.
Streets on fire, budget on the line
The timing isn't great. Over the past week, hundreds of thousands marched across France. What began with students demanding more teachers and better school conditions widened into anger over wages, public services, and household bills. Some demonstrations turned violent, with fires and looting across several cities. More than 2,500 people were taken into custody following the unrest, according to Reuters.
The government aims to cut the deficit from 5.4% of GDP this year to 5% in 2027. Protesters want more public spending, not less. They have not specifically demanded a stablecoin tax, and the measure offers no direct relief for living costs — which makes its one-vote survival in the Assembly all the more unusual. A tax on crypto gains isn't what brought people into the streets, but it's now part of the budget package lawmakers are fighting over.
What's left before 2027
The amendment still has to clear further parliamentary hurdles, and the government's opposition means it won't travel quietly. If the budget fails or the provision is stripped out in later readings, the January 1, 2027 start date means nothing. For now, French crypto holders have a proposal to watch and a narrow vote to thank — or blame — depending on which side of a stablecoin swap they're on.
