French lawmakers have voted to tax crypto investors who move their profits into stablecoins, just as protests over living costs have erupted into some of the country’s worst riots in years.
On October 16, France’s National Assembly approved an amendment by 38 votes to 37, with 25 abstentions.
It would make certain crypto-to-stablecoin conversions taxable from January 1, 2027, if the budget becomes law.
France’s Tax Debate Meets Anger on the Streets
Over the past week, hundreds of thousands marched across France. What began with students demanding more teachers and better school conditions has widened into anger over wages, public services, and household bills.
Some demonstrations turned violent, with fires and looting across several cities. More than 2,500 people were taken into custody following the unrest, Reuters reported.
Both developments expose France’s growing budget dilemma.
BREAKING:
— Visegrád 24 (@visegrad24) October 18, 2026
Macron blames the protests in France on high fuel prices caused by the US-Iran War pic.twitter.com/GuVuAuHV2s
The government wants to reduce its deficit from 5.4% of GDP this year to 5% in 2027, while protesters are demanding greater public spending.
Left-wing lawmaker Nicolas Sansu, who introduced the crypto amendment, argued that investors should not avoid immediate taxation simply by converting Bitcoin into dollar-backed tokens instead of euros.
The proposal reflects the wider debate over tax fairness. However, protesters have not specifically demanded a stablecoin tax, and the measure offers no direct relief for living costs.
The government opposed it, warning that tracking these transactions could prove complicated.
BREAKING: 🇫🇷 France has proposed a 31.4% tax on swapping crypto into stablecoins, even when nothing is cashed out.
— Bull Theory (@BullTheoryio) October 14, 2026
For example, an investor buys $10,000 of Bitcoin and it rises to $20,000.
If they swap it into a stablecoin, they owe $3,140 in tax, even though they never cashed… pic.twitter.com/ceMEhj2Noy
Who Will Pay France’s New Crypto Tax?
France already taxes private crypto profits at a standard 31.4% rate.
Currently, most crypto-to-crypto exchanges defer taxation. The amendment would end that deferral for conversions into qualifying fiat-backed stablecoins.
Here’s how it could work. Buy Bitcoin for €10,000. It rises to €20,000. Swapping it into a qualifying stablecoin could trigger €3,140 in tax on the €10,000 profit, without withdrawing euros.
- Who pays? French tax-resident individuals investing privately. Professional traders follow different rules.
- What’s exempt? Simply holding stablecoins does not trigger the proposed tax. Ordinary crypto-to-crypto swaps generally retain their deferral.
The proposal still faces further parliamentary scrutiny before becoming law.
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