France is weighing a proposal to apply its 31.4% cryptocurrency capital gains tax to transactions involving EU-regulated stablecoins. Chainalysis France CEO Francois Volpoet cautioned that the change could drive investors toward offshore exchanges and less transparent trading channels.
The proposal forms part of France’s 2027 budget, which entered debate in the National Assembly last week. Lawmakers have until Dec. 10 to approve the spending plan.
On Oct. 7, the Assembly’s finance committee approved an amendment that would make exchanging cryptocurrencies such as Bitcoin for certain stablecoins a taxable event. The proposal covers electronic money tokens regulated under the European Union’s Markets in Crypto-Assets (MiCA) framework, which became fully applicable on July 1.
Under current French rules, crypto-to-crypto swaps generally do not trigger capital gains tax. The existing 31.4% flat rate typically applies when investors convert cryptocurrency into fiat currency or use their holdings to pay for goods and services.
If enacted, the amendment would introduce taxation on swaps into qualifying EU-regulated stablecoins from Jan. 1, 2027. Because the proposal targets a specific category of tokens, traders could be encouraged to move toward alternatives that fall outside its scope.
Chainalysis warns of a shift toward unregulated markets
Francois Volpoet, Chainalysis’ CEO for France, said the proposed tax could undermine efforts to bring more cryptocurrency transactions into the regulated financial system.
In an email to CoinDesk, Volpoet questioned whether increasing the tax burden would generate better results than encouraging more taxpayers to disclose their assets and transactions.
He argued that regulated stablecoin transfers are easier for authorities to monitor than activity conducted through decentralized finance (DeFi) protocols or self-custody wallets.
According to Volpoet, the proposal could encourage traders to use DeFi platforms, peer-to-peer transactions and exchanges operating outside international tax-reporting frameworks.
He also pointed out that the amendment applies to MiCA-compliant stablecoins while leaving tokens such as USDT, DAI and PAXG outside the proposed rules.
Chainalysis estimates that France recorded $9.4 billion in taxable onchain crypto activity during 2025, including $2.5 billion in gains. Volpoet said these figures do not reveal how much trading activity could shift if the new tax takes effect.
He also cited differences in European trading growth between EURC and USDC. EURC trading volumes rose 2,727% between July 2024 and June 2025, while USDC volumes increased 86%. Volpoet referenced the contrast as an example of how regulatory developments can influence trading patterns.
Mandatory wallet reporting raises privacy concerns
Another amendment supported by the finance committee on Oct. 9 would require French taxpayers to declare self-hosted cryptocurrency wallets containing at least €100,000 in assets, equivalent to approximately $116,000. Noncompliance could lead to fines of up to $11,600.
Volpoet expressed concern that collecting information about substantial crypto holdings could create security risks, particularly as physical attacks targeting cryptocurrency holders have increased in France.
By July, Europe had recorded 39 of the 52 reported incidents worldwide, with France accounting for 33 cases, or 63.5% of the global total.
Chainalysis documented 30 violent attacks in France during the first half of 2026, Volpoet said. More than 40% of those incidents reportedly targeted relatives of cryptocurrency holders rather than the investors themselves.
He warned that mandatory financial disclosures could place families at risk if confidential information were exposed. Volpoet called for strict controls governing access to the reported data.
Additional cryptocurrency tax proposals
French lawmakers have also backed a measure to extend the country’s exit tax to cryptocurrency holdings valued at approximately $900,000. The proposal would subject unrealized crypto gains to rules already applicable to wealthy shareholders who move abroad.
A separate amendment approved by the finance committee on Oct. 7 would allow investors to carry forward cryptocurrency losses for up to 10 years, bringing the treatment of crypto losses closer to the rules governing stock investments.
However, the finance committee later rejected the revenue section of the government’s 2027 budget by 31 votes to three. Consequently, the cryptocurrency amendments must be presented again during the full National Assembly’s deliberations.
Lawmakers are scheduled to vote on the revenue section on Oct. 20. None of the proposed measures has become law.
Greece considers a lower tax rate
France’s proposed changes come as Greece moves toward a more moderate approach to cryptocurrency taxation.
A draft bill released for public consultation last week proposes a 10% capital gains tax on cryptocurrency profits. If approved, the measure would place Greece among the EU countries with relatively low taxes on crypto gains.
France, Germany and Italy, by contrast, apply or are considering cryptocurrency capital gains tax rates above 25%.
The contrasting proposals highlight Europe’s differing approaches to taxing digital assets, as governments attempt to balance tax collection and regulatory oversight against the risk of driving cryptocurrency activity elsewhere.
