Proposed 31.4% French tax on regulated stablecoins could drive crypto traders offshore
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
France's National Assembly is debating a 2027 budget proposal that would tax swaps from cryptocurrencies into EU MiCA-regulated stablecoins at a 31.4% capital gains rate starting January 1, 2027. Chainalysis cautions that this could drive investors toward unregulated stablecoins and decentralized finance (DeFi) platforms. Additional measures include requiring disclosure of self-hosted wallets holding at least €100,000 and extending exit taxes to large crypto holdings.
Why it matters
According to Chainalysis, taxing MiCA-regulated stablecoins could undermine regulatory efforts by pushing traders toward less transparent, unregulated tokens and trading methods, complicating tax enforcement. The proposal could affect investor behavior and increase risks related to security breaches given wallet disclosure requirements. The source does not elaborate further on broader market or policy impacts.
Key context
Swapping one cryptocurrency for another currently does not trigger capital gains tax in France, which charges a 31.4% flat tax when cashing out or spending crypto. The EU's MiCA framework came into force July 1, 2025, regulating certain stablecoins classified as "electronic money tokens." The proposed tax targets these MiCA-stablecoins but excludes prominent stablecoins like USDT, DAI, and PAXG. France's 2027 budget revenue section, including these crypto tax amendments, was initially rejected and must be resubmitted.
Key numbers and entities
France’s proposed capital gains tax rate: 31.4%. Threshold for wallet disclosure: €100,000 (~$116,000). Fine for non-disclosure: up to $11,600. Reported taxable crypto activity in France in 2025: $9.4 billion, including $2.5 billion in gains. Chainalysis CEO for France: Francois Volpoet. France recorded 33 of 52 worldwide crypto-related violent incidents by July 2026.
What remains unclear
The current status and likelihood of the proposals passing into law remain uncertain after the initial rejection in the National Assembly. The source does not clarify specific safeguards planned for protecting wallet disclosure data or how enforcement would be managed. The broader market reaction and potential shifts toward certain stablecoins or DeFi platforms have not been quantitatively established.