France’s tax proposal would tax Bitcoin-to-USDC swaps before investors cash out

What happened

France’s proposed crypto tax changes would make a move from Bitcoin or Ether into certain stablecoins (a digital token meant to hold a fixed value, usually one dollar) a taxable disposal, even if the investor never withdraws cash. 7 , adding that proposed exception to a broader overhaul of how private crypto gains are calculated.

The committee-approved amendment would end deferral for swaps into MiCA (the EU’s regulation for crypto markets) e-money tokens and change the acquisition (one company buying another) basis used to calculate gains. The provision would apply to disposals and exchanges from Jan.

For an investor selling Bitcoin exposure into USDC (Circle’s dollar-pegged token), the consequence would be a change in the tax timing of a risk-reduction trade. But the proposal also changes the cost deducted from those proceeds, and gives older holdings a transition choice.