France Approves 31.4% Tax on Crypto-to-Stablecoin Conversions Amid Protests

On October 16, 2026, the French National Assembly passed an amendment to tax crypto investors who convert their profits into stablecoins. The amendment was approved by a narrow margin of 38 votes to 37, with 25 abstentions, and is set to take effect on January 1, 2027, if the budget is approved.

This legislative move comes at a time of significant unrest in France, where protests have erupted over rising living costs, with demonstrators expressing dissatisfaction over wages and public services. The protests have escalated into violence, leading to over 2,500 arrests across various cities.

The new tax measure, introduced by left-wing lawmaker Nicolas Sansu, aims to ensure that investors do not evade immediate taxation by converting Bitcoin into stablecoins instead of euros. Currently, France taxes private crypto profits at a rate of 31.4%, but most crypto-to-crypto exchanges can defer taxation. The proposed amendment would eliminate this deferral for conversions into qualifying fiat-backed stablecoins.

For example, if an investor purchases Bitcoin for €10,000 and it appreciates to €20,000, swapping it into a stablecoin would incur a tax of €3,140 on the €10,000 profit, even if no euros are withdrawn. However, simply holding stablecoins would not trigger this tax, and ordinary crypto-to-crypto swaps would retain their deferral.

The government has expressed concerns about the complexity of tracking these transactions, and the proposal still requires further parliamentary scrutiny before becoming law. Observers are closely watching the situation, as the outcome could influence market sentiment and regulatory approaches across Europe.