France Advances Proposed Tax on Crypto-to-Stablecoin Swaps

France’s National Assembly adopted an amendment by 38 votes to 37 that would tax gains when investors exchange cryptocurrency for certain stablecoins, but the measure is not yet law. The vote on amendment I3898 included 25 abstentions and advances a proposed change to the 2027 budget bill. If enacted, the amendment would end tax deferral on swaps into e-money tokens defined under the European Union’s Markets in Crypto-Assets Regulation, or MiCA. The change is set to apply from January 1, 2027. Gains from qualifying swaps would be subject to France’s 31.4% flat tax, even if investors do not convert the stablecoins into euros or spend them. Under current rules described in the amendment, crypto-to-crypto trades can defer tax until an investor sells for euros or uses the assets to make purchases. The proposal would treat the move into a qualifying stablecoin as the taxable point instead. Its definition refers to a token pegged to one official currency and does not specify whether the issuer must hold an EU authorization. The amendment would also change how gains are calculated. Rather than using the value and total acquisition cost of an investor’s portfolio, the proposed method...