French National Assembly deputies approved a proposal on Friday to tax gains from converting cryptocurrencies into stablecoins at 31.4 percent. The vote was 38 in favour, 37 against and 25 abstentions. The measure would end a tax exemption for conversions into stablecoins that were not converted into euros.
Deputies argued that the exemption resulted from a gap in the legislation. The capital gain from converting into stablecoins backed by fiat currencies was not taxed, they said. Applying the same 31.4 percent rate already charged on conversions into local currency would collect revenue without creating a new burden.
A gap in the law
The deputies described the change as simply applying existing tax legislation to a situation that had not been anticipated. Under the proposal, the tax would take effect from January 2027 if it is approved.
Lawmakers pointed to other jurisdictions. The United Kingdom and Italy have already legislated in this direction, treating stablecoins as currency regardless of their denomination.
Separate proposal on self-custody
A separate bill, not yet voted, would require holders to declare self-custody wallet holdings above 100,000 euros. Our market data shows EUR/USD at $1.1231 as of 15:52 GMT on 20 October.
Speculators are net short the euro, according to CFTC data for the week to 13 October, with 137,573 contracts. That position grew by 38,241 contracts from the previous week.
Related: French lawmakers move to tax crypto-to-stablecoin conversions · India moves to block 15 offshore crypto platforms
Data: Swissquote · CFTC
