Thirty-eight votes to 37. That is the margin by which France’s National Assembly, on October 16, adopted amendment I-3898 to the 2027 budget, a change that would make swapping crypto into a euro- or dollar-pegged stablecoin a taxable sale. Only 100 of 577 deputies took part, and 25 of them abstained, according to Decrypt’s reading of the Assembly’s vote record. A rule that could reshape how millions of French holders manage risk passed with roughly one in six lawmakers in the room.
What the amendment actually changes
Today, France lets investors move between crypto assets without owing tax as long as no euros change hands. The bill only arrives when you cash out to fiat or spend. Amendment I-3898 carves an exception out of that deferral: any exchange where the seller receives an e-money token as defined by the EU’s Markets in Crypto-Assets regulation (MiCA) would no longer qualify.
In practice, e-money tokens are stablecoins pegged to a single official currency, such as USDC or a euro stablecoin. Under the amendment, selling Bitcoin for USDC on or after January 1, 2027 would be treated like selling it for euros. The gain would fall under France’s flat tax, which CoinDesk reports now stands at 31.4% (investors can still opt for the progressive income-tax scale instead).
The text also rewrites the maths. France currently calculates crypto gains on a portfolio-wide basis. The amendment would switch to the acquisition cost of the specific assets sold, using a weighted average where the same coin was bought at different prices. For holdings bought before 2027, taxpayers could either document the actual cost of each asset or split their December 31, 2026 portfolio cost across holdings pro rata to value, an irrevocable choice made on their first taxable return after the change.
Why the government opposed it
This was not a government measure. It was tabled by communist-group deputies led by Nicolas Sansu, and Public Accounts Minister David Amiel asked for it to be withdrawn. “We first need to define stablecoins, then ensure our ability to monitor and trace reallocations within a portfolio of assets,” he told lawmakers, per CoinDesk. The finance committee’s rapporteur general, Philippe Juvin, also favoured keeping the deferral, citing crypto’s volatility.
The industry worry is behavioural. Chainalysis’ Francois Volpoet told CoinDesk the levy could push traders toward DeFi platforms, peer-to-peer deals and offshore exchanges that sit outside international tax-reporting arrangements. There is an irony here: the tax targets only MiCA-regulated stablecoins, the most supervised corner of the market, so a trader rotating into an unregulated token or a DeFi position could sidestep it.
It is not law yet
The vote advances the measure but does not settle it. The revenue section of the budget still has to clear the rest of the Assembly process, then the Senate and reconciliation, and the amendment could be changed or dropped at any stage. It also lands alongside a separate, contested French proposal to make holders report wallets above €100,000, which has drawn its own industry backlash.
What it means for Indian investors
For Indian holders, France’s “new” rule is old news. India already treats every crypto-to-crypto swap, including BTC into USDT or USDC, as a transfer of a virtual digital asset. Gains are taxed at a flat 30% plus cess under Section 115BBH, losses cannot be offset against other income, and 1% TDS under Section 194S applies to transfers above the thresholds. There is no deferral to lose.
Note (updated 22 October 2026): from 1 April 2026 these rules sit in the new Income-tax Act, 2025. The 30% rate is in section 194 (Table Sl. No. 4), replacing Section 115BBH, and the 1% TDS is in section 393(1) (Table Sl. No. 8(vi)), replacing Section 194S. The rates and thresholds are unchanged. See our 1% TDS guide.
The French debate is still useful for two reasons. First, it shows that even MiCA-style regulated stablecoins do not get special tax treatment; regulators see a stablecoin as cash-equivalent. Second, France’s move toward per-asset weighted-average costing highlights a record-keeping burden Indian traders already face: if you rotate often, you need clean cost records for every coin, every trade. If you are parking profits in stablecoins on an Indian exchange to “wait out” volatility, remember that each rotation is already a taxable event here.
FAQ
Is swapping crypto for stablecoins taxable in France right now? No. Under current rules, crypto-to-crypto swaps without a cash payment benefit from tax deferral. The amendment would change that only for swaps into MiCA e-money tokens, from January 1, 2027, if it survives the budget process.
What rate would apply? France’s flat tax on capital income, reported at 31.4%, unless the investor opts for the progressive income-tax scale.
Is a crypto-to-stablecoin swap taxable in India? Yes. India taxes transfers of virtual digital assets, including crypto-to-crypto swaps, at 30% plus cess, with 1% TDS on transfers above the thresholds.
This article is for information only and is not financial or tax advice. Consult a qualified tax professional about your situation.