France Proposes Tax on Crypto-to-Stablecoin Swaps Amid Regulatory Concerns
- On October 7, France’s National Assembly finance committee approved a 31.4% tax on certain crypto-to-stablecoin swaps.
- Francois Volpeau from Chainalysis warned this could lead traders to seek offshore alternatives beyond EU regulation.
- The proposed tax would apply to regulated stablecoins under the EU’s MiCA framework and could be effective from January 1, 2027.
- A separate amendment requires reporting of non-custodial wallets holding over €100,000, with fines for noncompliance reaching $11,600.
- Lawmakers also supported extending exit taxes to crypto assets valued at around $900,000 and allowing losses to be carried forward for up to ten years.
These amendments are part of France’s draft budget discussions set to conclude by December. The changes aim to enhance regulatory oversight but may inadvertently drive activity into less traceable avenues.
The proposed tax on crypto-to-stablecoin swaps could significantly impact trading behavior as it targets regulated tokens directly linked to the financial system. (Source)
