France proposes a 31.4% tax on regulated stablecoin conversions as Russia sets an end date for direct P2P crypto trades

France proposes a 31.4% tax on regulated stablecoin conversions as Russia sets an end date for direct P2P crypto trades

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News Editor
2026-10-16 10:10:10
France and Russia are moving on separate fronts to tighten crypto oversight, with both policy tracks converging on 2027. In France, a budget amendment under discussion in the National Assembly would treat conversions of appreciated crypto holdings into electronic money tokens, or EMT stablecoins, that comply with the European Union’s Markets in Crypto-Assets framework as taxable disposals. The proposal would apply the country’s default 31.4% capital gains tax rate and, if adopted, would take effect on Jan. 1, 2027. That would mean tax could be triggered even when an investor shifts from assets such as BTC or ETH into regulated stablecoins inside a self-custodied wallet without moving funds into the banking system. In Russia, the central bank has outlined a different form of restriction aimed at market structure rather than taxation. Under its latest plan, direct person-to-person over-the-counter crypto transactions would remain legal only until July 1, 2027. After that date, any conversion or transfer involving crypto assets and fiat money would need to go through authorized intermediaries, including licensed operators, digital financial asset platforms, or supervised brokers. According to the report, France’s Assembly is expected to resume debate on the full budget text around Oct. 20 and vote the same day on the fiscal draft containing the stablecoin tax clause, while the Bank of Russia’s detailed rules for authorized intermediaries are set to be submitted to the State Duma later this year.

By TechFlow

On Oct. 16, 2026, Coin Bureau market coverage and CoinMarketCap policy disclosures pointed to parallel signs of tighter crypto regulation in Europe and Eurasia, with both policy tracks anchored to 2027. In France, a budget amendment under discussion in the National Assembly would classify conversions into electronic money tokens, or EMT stablecoins, that comply with the European Union’s Markets in Crypto-Assets, or MiCA, regime as taxable disposals, applying the default 31.4% capital gains tax rate. In Russia, the central bank said direct peer-to-peer, or P2P, crypto trades between individuals will remain permissible only until July 1, 2027, after which flows must pass through authorized intermediaries.

France moves to tax conversions into MiCA-compliant EMT stablecoins

In many major jurisdictions, crypto-to-crypto swaps have generally benefited from tax deferral. France’s current tax treatment has followed that logic. Investors who exchanged Bitcoin or Ether on-chain into stablecoins such as Tether (USDT) or USD Coin (USDC) for hedging purposes were typically not treated as realizing capital gains as long as the funds were not withdrawn to a bank account and converted into fiat currency.

The budget amendment now under review would break with that approach. It would treat electronic money tokens that fall under the MiCA framework as legally equivalent to sovereign fiat money and would require any conversion of appreciated crypto assets into regulated stablecoins to trigger a tax liability starting Jan. 1, 2027.

That means an investor could face a 31.4% tax bill even if the hedge is executed entirely within a self-custodied wallet and the assets never enter the traditional financial system. The report said the clause had earlier run into procedural resistance during budget review, and that the full National Assembly is expected to resume debate on the complete budget text around Oct. 20.

Russia sets a deadline for direct person-to-person P2P trading

Russia’s approach is aimed less at tax treatment and more at the underlying liquidity channel. According to the central bank’s latest disclosed plan, direct over-the-counter P2P transactions between individuals will remain legal only until July 1, 2027.

The report said that since Russia came under external financial sanctions, direct P2P networks without an intermediary have served as an important channel for civilian capital movement, cross-border commercial settlement, and personal wealth preservation. With the Bank of Russia drawing that compliance line, any point-to-point transfers outside state supervision would lose legal space from the second half of 2027.

Under the disclosed framework, all exchanges and transfers involving crypto assets and fiat currency would then have to run through state-authorized licensed operators, digital financial asset platforms, or supervised brokers. The result would be the end of anonymous large-scale over-the-counter fund transfers in direct person-to-person form.

Both measures converge on 2027

The report linked the two moves to a broader rise in sovereign compliance capacity rather than treating them as isolated events. As MiCA moves toward full implementation in the European Union and the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, or CARF, tax information exchange mechanism takes effect, two areas that have been harder for regulators to reach, self-custodied on-chain activity and over-the-counter person-to-person transfers, are being drawn into state oversight through tax definitions and licensing access rules.

The input also said that once stablecoin conversions face a direct tax cost of more than 30% on gains and unlicensed over-the-counter trading is replaced by tightly identified intermediaries, capital routes may begin to shift. France’s National Assembly is set to vote on Oct. 20 on the fiscal bill containing the stablecoin tax provision, while the Bank of Russia’s detailed rules for authorized intermediaries will be formally submitted to the State Duma later this year.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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