France Nearly Rejects New Crypto-to-Stablecoin Tax in One-Vote Win

French lawmakers have taken a big step toward taxing certain crypto trades — and they did it by the narrowest possible margin: a single vote.

On Friday, France's National Assembly (the country's main law-making body) approved a budget amendment (a proposed change to the government's yearly spending-and-tax plan) that targets crypto swaps.

The vote was extremely close:

• 100 lawmakers took part
• 38 voted in favor
• 37 voted against
• 25 abstained (chose not to vote either way)

What the rule actually does: Right now, French crypto holders can swap one cryptocurrency for another without paying tax, as long as no real euros are involved. You only owe tax when you cash out into regular money or spend it.

The new rule changes this for stablecoins (cryptocurrencies designed to hold a steady value, usually tied to a currency like the euro or dollar). Starting January 1, 2027, swapping crypto into certain regulated stablecoins would count as a *sale* — meaning any profit gets taxed.

The tax rate would be France's flat tax, which recently rose from 30% to 31.4% after the government increased charges on investment income.

Supporters, led by left-wing lawmaker Nicolas Sansu, argue stablecoins are often used like normal investments, and that profits moved into them currently slip through a "hole in the legislation." They point out the UK and Italy already do something similar.

The government opposed it. The Public Accounts Minister asked for the measure to be dropped, saying stablecoins first need a proper legal definition.

A separate proposal would force people to report self-held crypto worth €100,000 or more, with fines up to €10,000. The crypto community pushed back hard, warning that such data could put holders at risk — France has seen several crypto-related kidnappings.

Nothing is law yet. The Assembly votes on the full budget section on Tuesday, then it moves to the Senate (France's upper house of parliament) for further review.

This is an AI-generated summary. Read the original article at: https://decrypt.co/381413/french-lawmakers-back-stablecoin-swap-tax-by-just-one-vote