France Vote Could Tax Crypto-to-USDC Swaps From 2027

France’s National Assembly approved amendment I-3898 during the first reading of the country’s 2027 finance bill. The amendment would remove the tax deferral for some crypto-to-crypto exchanges when the investor receives an electronic money token, or EMT. The proposed rules would apply to sales and exchanges completed from Jan. 1, 2027, if they become law.

The vote recorded 100 voters, including 75 expressed ballots. The amendment passed with 38 votes in favor, 37 against and 25 abstentions. Lawmaker Nicolas Sansu filed the proposal with 16 co-signers.

I-3898 would amend Article 150 VH bis of France’s General Tax Code, which covers individual crypto investors. Under the current rules, exchanging one crypto-asset for another can generally defer tax until the investor converts the asset into fiat currency or uses it to pay for goods and services.

The amendment would remove that deferral when the investor receives an EMT as defined by the European Union’s Markets in Crypto-Assets Regulation, or MiCA. An EMT is a crypto-asset designed to maintain a stable value by referencing one official currency. USDC and EURC are commonly identified as EMTs, although their legal classification depends on the applicable MiCA rules.

The provision would not cover every token described as a stablecoin. MiCA places asset-referenced tokens, algorithmic tokens and crypto-collateralized tokens in separate categories. Those tokens would not fall within the amendment solely because traders use them as a cash substitute.

If enacted, a qualifying exchange would be treated like a sale for tax purposes. The proposed 31.4% flat tax would apply to the gain, rather than the full transaction value. An investor who bought crypto for €6,000 and exchanged it for €10,000 worth of an EMT could face about €1,256 in tax on the €4,000 gain.

The amendment includes rules for assets acquired before Jan. 1, 2027. Taxpayers could keep documented historical acquisition costs or allocate their portfolio’s total acquisition value as of Dec. 31, 2026, across their holdings according to their market values. The second method would become irrevocable when used for the first taxable disposal after the new rules take effect.

The proposal addresses the difference between exchanging crypto for fiat currency and exchanging it for a currency-linked token. Under the current system, the first transaction can trigger tax while the second can generally defer it. I-3898 would treat the receipt of certain EMTs as a taxable event, even if no euros or dollars are deposited into a bank account.

The amendment is not yet law. It must remain in the finance bill through the Assembly’s remaining proceedings, pass the relevant vote on the bill’s revenue section and undergo review by the Senate. The final text must then be adopted and published in France’s Journal officiel. Any of these stages could change or remove the provision.

Until that process ends, French taxpayers remain subject to the current rules. If I-3898 becomes law without changes, a qualifying exchange into USDC, EURC or another EMT would trigger a taxable gain from Jan. 1, 2027.