Parliamentary debate in France: major tax reforms for cryptocurrencies in 2027

The French Parliament is preparing to examine, in the first half of 2027, a major tax reform for cryptocurrencies, the measures of which could come into effect as early as January 2028. These proposals, which aim to expand the taxation of exchanges between digital assets and stablecoins while tightening the "flat tax," are already raising questions among investors and exchange platforms, in a context where daily transaction volumes exceed one billion dollars for Bitcoin alone. Context Cryptocurrency taxation in France has been based since 2019 on a "flat tax" regime of 30%, including 12.8% income tax and 17.2% social security contributions. This framework, considered relatively favorable compared to other European countries, has contributed to the growth of investments in digital assets within the territory. However, the Autorité des marchés financiers (AMF) estimates that nearly 150,000 French holders keep their assets in wallets not hosted by regulated platforms, thus escaping any mandatory declaration. The current debate takes place in a context of budgetary tensions and the search for new tax revenues. The amendments under discussion are based on proposals from the finance bill (PLF) for 2027, the outlines of which remain blurred. At the same time, the cryptocurrency market is going through a phase of relative stability, with a Crypto Fear & Greed index at 50/100 (neutral) as of October 26, 2026, according to data from CryptoScore Pro. Daily Bitcoin trading volumes are around one billion dollars, while the stablecoin Tether (USDT) maintains a market capitalization of 182.37 billion dollars. The Facts According to the article published by Cryptoast on October 26, 2026, the amendments under discussion in Parliament provide for several key measures: Extension of taxation to crypto-stablecoin exchanges : Transactions between cryptocurrencies and stablecoins, such as USDT, would now be considered taxable disposals. The applicable rate has not yet been specified. Tightening of the "flat tax" : The current rate of 30% could be revised upwards, although the new threshold has not been communicated. No indication is given regarding a potential progressivity of the tax. Legislative calendar : Decisive votes are expected in the first half of 2027, with an entry into force planned for January 1, 2028. However, the final text could be modified or abandoned before this date. Mandatory declaration of non-custodial wallets : Approximately 150,000 holders, according to AMF estimates, would be affected by a new declaration framework for assets held outside of French platforms. The practical modalities remain to be defined. Data from CryptoScore Pro, updated as of October 26, 2026, indicate that the daily volume of Bitcoin transactions amounts to approximately 1 billion dollars. On the other hand, Cryptoast provides no figures on the expected fiscal impact of these reforms, nor on the potential revenues for the State. The bill also does not specify whether exemptions or taxation thresholds will be established for small holders. Understanding key concepts Flat tax The "flat tax," or single fixed levy (PFU), is a fixed-rate taxation system applied to capital income, including capital gains realized on cryptocurrencies. In France, this rate currently stands at 30%, split between 12.8% income tax and 17.2% social security contributions. For example, an investor realizing a capital gain of €10,000 on the sale of Bitcoin will pay €3,000 in taxes, regardless of their overall income level. This simplified regime aims to encourage investment by reducing fiscal complexity, but its tightening could increase the burden for individuals. Stablecoin A stablecoin is a cryptocurrency designed to maintain a stable value relative to a reference asset, typically a fiat currency such as the US dollar. USDT (Tether), for example, is pegged to the dollar and shows a price close to 1 USD ($0.9987 as of October 26, 2026, according to CryptoScore Pro). These assets are widely used to facilitate trading on trading platforms, as they allow users to avoid the volatility of traditional cryptocurrencies like Bitcoin. Their integration into the scope of taxable transactions could complicate tax management for investors. Non-custodial wallet (or "self-custody") A non-custodial wallet, or "self-custody," refers to a digital asset storage device managed directly by the user, without an intermediary such as an exchange platform. Unlike accounts held on regulated exchanges (such as Binance or Coinbase), these wallets, often hardware (hardware wallets) or software, are not subject to automatic reporting obligations. In France, the AMF estimates that 150,000 holders use this type of solution, thereby escaping tax traceability mechanisms. The bill envisions establishing a mandatory reporting framework for these assets in order to limit tax evasion. Analysis: what is at stake The tax reforms envisioned in France for 2027 introduce mechanisms likely to profoundly modify the market dynamics of digital assets. By taxing exchanges between cryptocurrencies and stablecoins, the legislator expands the tax base, transforming every swap into a potentially capital-gains-generating operation. According to Cryptoast, this measure could reduce the liquidity of stablecoins like USDT, whose daily volume reaches 4.03 million dollars (CryptoScore Pro data as of October 26, 2026), by increasing transaction costs for investors. The tightening of the flat tax, currently set at 30%, could also alter economic incentives. An increase in the tax rate would decrease the net profitability of operations, pushing some actors to favor foreign platforms or tax optimization strategies. In the longer term, this pressure could slow the adoption of cryptocurrencies in France, particularly in the DeFi sectors, where stablecoins play a central role. High-yield protocols, already sensitive to liquidity variations, could see their capital flows contract. Several scenarios are…