French MP Nicolas Sansu filed Amendment I-3898, which was approved by France's Finance Committee before advancing to the French National Assembly

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France should tax cryptocurrency conversions into stablecoins

The French executive government remains opposed to Amendment I-3898, which subjects crypto-to-stablecoin swaps to capital gains taxation

On October 16, 2026, 100 of 577 French National Assembly MPs voted (38-37, with 25 abstentions) to adopt Amendment I-3898 to the 2027 Finance bill, proposing a 31.4% capital gains tax on crypto-to-stablecoin swaps

Analysts suggest taxing stablecoin swaps could impede stablecoin adoption in France and lead French investors to rotate into alternatives like gold-linked digital tokens

Amendment I-3898 seeks to close a regulatory tax loophole regarding crypto-to-stablecoin exchanges and stablecoins, which French legislators argue perform money functions such as payments and investments

The 31.4% tax proposed in Amendment I-3898 on crypto-to-stablecoin swaps would disrupt French trading strategies that use stablecoins to park digital asset gains and avoid immediate capital gains taxes

If adopted without modifications by the French Parliament, the capital gains tax imposed by Amendment I-3898 on crypto-to-stablecoin exchanges will take effect on January 1, 2027

OKXICE plans to operate 24/7 permissioned liquidity pools on the X Layer network, pairing stock tokens against USDC, USDG, or USDT stablecoins for identity-verified traders holding non-transferable soulbound tokens

French media reported that the French government could exclude Amendment I-3898 or approve the budget bill's first iteration without amendments to prevent the tax measure from passing

Amendment I-3898 argues that untaxed crypto-to-stablecoin exchanges deprive the French government of a valuable tax resource without creating any new burden

A French National Assembly vote on Tuesday, October 20, 2026, will decide the delivery of Amendment I-3898 and the 2027 Finance bill to the Senate for further consideration

Chainalysis reported that 90% of cryptocurrency gains in France go undeclared, with 24,000 French taxpayers declaring nearly $427 million in gains for 2024

In February 2026, Chinese regulators issued a joint notice banning unauthorized issuance of yuan-pegged stablecoins and tightening controls on digital assets

Republican incumbent Pete Ricketts voted in favor of the Digital Asset Market Clarity Act and the Guiding and Establishing National Innovation for US Stablecoins Act while in office

Individuals who fail to declare self-custodied crypto holdings under Amendment I-CF821 face fines of up to €10,000 ($11,000)

Sponsors of Amendment I-CF821 introduced the disclosure measure to combat tax evasion and address unrecorded cryptocurrency capital gains

On October 9, 2026, the French National Assembly's Finance Committee adopted Amendment I-CF821, requiring individuals to declare self-custodied crypto wallets valued at or above €100,000 ($112,000) annually as of December 31

Circle's USDC stablecoin reached a circulation of $72.6 billion to $73.3 billion in the second quarter of 2026, representing a 19% increase from the prior year

Regulated crypto service providers in France already face tax reporting obligations, whereas self-custodied wallets previously remained unmonitored

Circle CEO Jeremy Allaire stated that businesses and individuals in emerging markets are turning to stablecoins for digital-dollar payments and financial services as blockchain moves into a mainstream scaling phase