France's Stablecoin Tax Vote: What MiCA-Compliant e-Money Tokens Now Mean for European Crypto Traders

France's National Assembly has voted narrowly—38 to 37, with 25 abstentions—to advance amendment I-3898, which would impose capital gains tax on swaps between cryptocurrencies and MiCA-regulated e-money tokens (EMTs). The measure, embedded in the draft 2027 finance bill, targets the common practice of rotating out of volatile crypto positions into stablecoins as a risk-management move without triggering a cash realisation event.

Under current French tax law, a crypto-to-crypto exchange does not constitute a taxable disposal. Gains are only recognised when a holder converts crypto assets into euros or other fiat currency. Amendment I-3898 carves out an exception specifically for MiCA-defined EMTs—stablecoins issued by regulated entities under the EU's Markets in Crypto-Assets framework. From a policy standpoint, the argument is that EMTs represent a near-cash instrument and should be treated accordingly for tax purposes.

The practical consequence is significant for active traders. An investor holding Bitcoin with a large unrealised gain who converts to a euro-pegged stablecoin to reduce volatility exposure would now trigger a taxable gain at the point of conversion, even if no euros ever enter a bank account. The tax liability arises within the crypto ecosystem itself—a meaningful shift in how France treats these instruments.

Compounding the asymmetry, MPs simultaneously rejected amendment I-3653, which would have allowed crypto losses to be carried forward over ten years. The vote was 75–18 against. Current rules permit crypto losses to offset only same-year crypto gains, with no carryforward to future years or offset against other asset categories. Traders who incur losses in a down market year cannot carry them forward to offset gains in a recovery year.

The stablecoin tax provision is scheduled for implementation on January 1, 2027, contingent on the full finance bill passing into law. For European crypto holders with French tax residency—and for any MiCA-compliant EMT issuer watching how member states implement the framework—this vote signals that regulatory clarity in the EU is not uniformly taxpayer-friendly. It is worth monitoring closely as other member states consider similar amendments.