Proposed French tax on regulated stablecoins could drive crypto traders offshore

France’s 31.4% Stablecoin Tax: Potential Offshore Shift

France is debating a budget amendment that would extend its flat 31.4% capital‑gains tax to swaps from cryptocurrencies into stablecoins that fall under the EU’s MiCA framework. The change, slated for 1 January 2027 if approved, would turn a previously tax‑free activity into a taxable event, while other crypto transactions remain exempt.

Why the Tax Matters

• Current regime – France taxes crypto gains only when assets are sold or spent. Swapping one token for another, including stablecoins, is not a taxable event today.
• Proposed amendment – The finance committee’s amendment would treat swaps into MiCA‑compliant stablecoins as a capital‑gains event, applying the same 31.4% rate.
• Scope – The rule targets EU‑regulated stablecoins (e.g., euro‑pegged tokens) but leaves non‑MiCA tokens such as USDT, DAI or PAXG untouched.

Risks of an Offshore Drift

Chainalysis’ France lead, François Volpoet, warns that the higher tax burden could drive traders toward less transparent channels:

1. DeFi platforms – Decentralised exchanges do not provide the same reporting hooks as regulated stablecoins, making tax enforcement harder.
2. Peer‑to‑peer trades – Direct swaps between users can bypass official channels entirely.
3. Off‑shoring – Traders may seek jurisdictions with lighter crypto tax regimes, echoing past shifts observed after other European tax hikes.

If activity moves offshore, French authorities could lose visibility on a market that generated roughly €9 billion in on‑chain activity in 2025, according to Chainalysis data.

Parallel Measures and Their Implications

The finance committee is also pushing two related proposals:

• Wallet disclosure – Taxpayers would need to declare self‑hosted wallets holding €100 000 or more, with penalties up to €10 000 for non‑compliance. Volpoet highlights security concerns, noting a rise in physical attacks on crypto holders in France.
• Extended exit tax – Crypto holdings above €900 000 would fall under the existing exit‑tax rules applied to wealthy expatriates, bringing unrealised gains into the tax net.

Both measures aim to broaden the tax base but could further incentivise concealment or relocation.

What This Means for Stakeholders

• Investors – Those holding significant crypto portfolios should evaluate the tax impact of swapping into EU‑stablecoins versus staying in native assets or moving to non‑MiCA tokens.
• Exchanges – Platforms offering MiCA‑compliant stablecoins may see reduced French volume, while services facilitating off‑shore swaps could experience a surge.
• Policymakers – Balancing revenue goals with market competitiveness will be crucial. Over‑taxation risks driving activity to jurisdictions with lighter regimes, undermining the very transparency the proposal seeks.

Looking Ahead

The amendment must still pass the full National Assembly, with a vote scheduled for 20 October. Until then, the crypto community should monitor the debate, prepare for potential compliance adjustments, and consider diversification strategies that mitigate tax exposure while preserving access to regulated stablecoins.

In a broader European context, France’s approach contrasts with Greece’s proposed 10% crypto CGT, highlighting divergent fiscal philosophies across the bloc.