France advances stablecoin tax, eyes self-custodial wallets and exit tax proposals

Traders who use stablecoins as a parking spot during volatile markets would face a tax bill at the 31.4% capital gains rate the moment they swap, even without touching euros. Fund managers and active traders lose the ability to de-risk into stablecoins tax-free, while the French treasury gains a new revenue stream from 2027. Critics already flag the likely response: traders shifting activity to DeFi protocols or offshore exchanges outside French jurisdiction to avoid triggering the charge.

The stablecoin measure sits alongside separate proposals on exit taxes for people leaving France with crypto holdings and reporting requirements for self-custodial wallets, signalling a broader push to close every gap in how digital assets escape the tax net. Taxing a swap into a stable token as if it were a cash-out blurs the line between holding crypto and exiting the asset class, a distinction that matters for anyone who treats stablecoins as a hedge rather than a sale.

The amendment still needs further parliamentary approval, with one report placing the next vote on November 3 as part of the broader 2027 finance bill process. A win there would lock in the January 2027 start date for ending stablecoin deferral; failure or amendment would leave the current crypto-to-crypto exemption intact and push the debate, along with the exit tax and wallet-reporting ideas, into later budget rounds.