France’s Proposed 31.4% Stablecoin Tax Could Push Crypto Traders Abroad

France is considering extending its 31.4% cryptocurrency capital gains tax to transactions involving EU-regulated stablecoins, prompting Chainalysis’ France CEO, Francois Volpoet, to warn that the measure could push traders toward offshore platforms and less-monitored markets.

The proposed change is included in France’s 2027 budget, which lawmakers began debating in the National Assembly last week. Parliament has until Dec. 10 to approve the budget.

On Oct. 7, the National Assembly’s finance committee adopted an amendment that would make exchanging cryptocurrencies such as Bitcoin for certain stablecoins a taxable event. The measure targets electronic money tokens regulated under the European Union’s Markets in Crypto-Assets (MiCA) framework, which became fully applicable on July 1.

Under France’s current tax rules, swapping one cryptocurrency for another generally does not trigger capital gains tax. Instead, the 31.4% flat rate applies when investors sell their crypto holdings for fiat currency or use them to make purchases.

If approved, the proposed amendment would introduce taxation on exchanges into qualifying EU-regulated stablecoins beginning Jan. 1, 2027. This distinction could encourage traders to turn to stablecoins that fall outside the targeted regulatory category.

Chainalysis warns of a potential shift to offshore trading

Francois Volpoet, Chainalysis’ CEO for France, said the proposal could undermine efforts to bring cryptocurrency activity into the regulated financial system.

In comments sent to CoinDesk by email, Volpoet questioned whether policymakers would benefit more from encouraging taxpayers to disclose their holdings or imposing higher taxes that could encourage more people to avoid reporting their activity.

He argued that transactions involving regulated stablecoins are easier for authorities to monitor than activity conducted through decentralized finance (DeFi) platforms or self-custody wallets.

Volpoet warned that the proposed tax could push investors toward DeFi services, peer-to-peer transactions and exchanges operating outside international tax-reporting frameworks.

He also noted that the amendment focuses on MiCA-compliant stablecoins while excluding other tokens, including USDT, DAI and PAXG, from its scope.

Chainalysis estimates that France recorded $9.4 billion in taxable onchain cryptocurrency activity in 2025, including $2.5 billion in gains. However, Volpoet said these figures do not establish how significantly trading patterns might change if the proposed tax takes effect.

He also highlighted a substantial difference in European trading growth between two stablecoins. EURC trading volumes increased by 2,727% between July 2024 and June 2025, compared with an 86% rise for USDC. He cited the figures as an example of how market activity can respond to regulatory developments.

Proposed wallet disclosures raise security concerns

A separate amendment approved by the finance committee on Oct. 9 would require French taxpayers to report self-hosted cryptocurrency wallets containing at least €100,000, equivalent to approximately $116,000, in assets. Failure to comply could result in fines of up to $11,600.

Volpoet raised concerns about the security risks associated with collecting information about large cryptocurrency holdings, particularly amid a rise in physical attacks targeting crypto owners in France.

As of July, Europe had recorded 39 of 52 reported global incidents involving such attacks. France accounted for 33 incidents, representing 63.5% of the worldwide total.

According to Volpoet, Chainalysis documented 30 violent attacks in France during the first half of 2026. More than 40% reportedly targeted family members of cryptocurrency holders rather than the holders themselves.

He warned that mandatory disclosures could expose investors and their relatives to greater danger if sensitive financial information were leaked. He therefore called for strict restrictions on access to the data.

Other proposed changes to France’s crypto tax rules

French lawmakers have also supported a proposal to extend the country’s exit tax to cryptocurrency holdings worth approximately $900,000. The measure would bring unrealized crypto gains within a framework already applied to wealthy shareholders who relocate abroad.

Another amendment backed by the finance committee on Oct. 7 would allow investors to carry forward cryptocurrency losses for as long as 10 years, aligning the treatment of crypto losses more closely with that of stock investments.

However, the finance committee subsequently rejected the revenue section of the government’s 2027 budget by 31 votes to three. As a result, the cryptocurrency amendments must be resubmitted during debate in the full National Assembly.

Lawmakers are scheduled to vote on the budget’s revenue section on Oct. 20. None of the proposed measures has become law.

Greece takes a different approach to crypto taxation

France’s plans come as Greece moves toward a lower cryptocurrency capital gains tax.

According to a draft bill released for public consultation last week, Greece is preparing to introduce a 10% capital gains tax on cryptocurrency profits. If adopted, the rate would place Greece among the European Union countries with relatively low taxes on crypto gains.

By comparison, France, Germany and Italy apply or are considering capital gains tax rates exceeding 25%.

The contrasting approaches highlight differences across Europe over how governments should tax digital assets while encouraging compliance and maintaining oversight of cryptocurrency markets.

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