France is considering extending its 31.4% cryptocurrency capital gains tax to swaps involving EU-regulated stablecoins, a proposal that Chainalysis France CEO Francois Volpoet warns could drive traders toward offshore platforms and less-monitored markets.
The proposed measure is included in France’s 2027 budget, which lawmakers began reviewing in the National Assembly last week. The deadline for passing the budget is Dec. 10.
On Oct. 7, the Assembly’s finance committee approved an amendment that would classify exchanges of cryptocurrencies such as Bitcoin for certain stablecoins as taxable transactions. The proposal applies to electronic money tokens covered by the European Union’s Markets in Crypto-Assets (MiCA) regulation, which became fully applicable on July 1.
Under existing French tax rules, swapping one cryptocurrency for another generally does not trigger capital gains tax. The current 31.4% flat rate typically applies when investors convert crypto into fiat currency or spend their holdings.
If approved, the amendment would make qualifying stablecoin swaps taxable from Jan. 1, 2027. Because the measure focuses on a specific group of EU-regulated tokens, it could encourage investors to consider alternatives outside that category.
Chainalysis warns of a possible move offshore
Francois Volpoet, Chainalysis’ CEO for France, said the proposed tax could work against efforts to bring cryptocurrency transactions into the regulated financial system.
In comments shared with CoinDesk, Volpoet questioned whether a higher tax rate would deliver better results than encouraging more taxpayers to report their assets and transactions.
He explained that authorities can more easily track transactions involving regulated stablecoins than activity conducted through decentralized finance (DeFi) protocols or self-hosted wallets.
Volpoet warned that the proposal could lead traders to use DeFi platforms, peer-to-peer networks and exchanges outside international tax-reporting arrangements.
He also highlighted the amendment’s limited scope, noting that it targets MiCA-compliant stablecoins while leaving tokens such as USDT, DAI and PAXG outside the proposed tax rules.
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 show how much trading activity might move elsewhere if the tax change is implemented.
He also pointed to a sharp difference in European trading growth between EURC and USDC. Between July 2024 and June 2025, EURC trading volumes increased by 2,727%, compared with an 86% rise for USDC. He cited the figures to illustrate how regulatory developments can influence market behavior.
Proposed wallet disclosures raise safety concerns
A separate 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, worth approximately $116,000. Those who fail to comply could face penalties of up to $11,600.
Volpoet raised concerns about the risks of collecting information on substantial crypto holdings, particularly given the increase in physical attacks targeting cryptocurrency owners in France.
By July, Europe had recorded 39 of the 52 reported incidents worldwide. France accounted for 33 cases, representing 63.5% of the global total.
According to Volpoet, Chainalysis recorded 30 violent attacks in France during the first half of 2026. More than 40% of those incidents reportedly involved attacks against relatives of cryptocurrency holders rather than the investors themselves.
He warned that mandatory disclosures could expose investors’ families to danger if confidential financial information were leaked. He called for strict restrictions on who can access the collected data.
Other proposed changes to crypto taxation
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 under rules 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 up to 10 years. This would bring the treatment of crypto losses closer to 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 revenue section on Oct. 20. None of the proposed measures has become law.
Greece takes a different approach
France’s plans come as Greece considers a considerably lower tax on cryptocurrency profits.
A draft bill published for public consultation last week proposes a 10% capital gains tax on crypto. If adopted, the rate would place Greece among EU countries with relatively low taxes on cryptocurrency gains.
By comparison, France, Germany and Italy apply or are considering rates exceeding 25%.
The contrasting proposals underscore the differences in how European governments are approaching cryptocurrency taxation, with policymakers weighing revenue collection and regulatory oversight against the possibility that higher taxes could push trading activity beyond their reach.
