French Stablecoin Tax Draws Warning Over Offshore Trading Shift

A proposed French tax on regulated stablecoins is prompting concern that the measure could reduce activity in channels subject to oversight rather than simply raise revenue. Francois Volpoet, Chainalysis’ CEO in France, warned that the proposed 31.4% levy could push crypto traders toward offshore alternatives.

Concern centers on market visibility

The warning focuses on where trading activity may move if regulated stablecoins become significantly more expensive to use. Traders seeking to avoid the tax could turn to offshore channels that are not monitored in the same way, according to Volpoet’s assessment.

That would create a policy trade-off. A tax aimed at regulated stablecoins could increase the cost of activity within the regulated market, while potentially shifting some transactions beyond the reach of the oversight mechanisms associated with those channels. The summary does not specify the proposal’s legislative stage, the transactions covered, or when the tax could take effect.

Why stablecoin access matters

Stablecoins are widely used within crypto markets as digital assets intended to maintain a stable value. Regulated versions are designed to operate within a formal compliance framework, making the treatment of these assets relevant not only to traders but also to companies operating in the digital-asset sector.

Volpoet’s warning therefore extends beyond the direct cost of the proposed tax. It raises the possibility that a measure applied to regulated products could alter the route traders use to access crypto markets. If activity moves offshore, monitoring and visibility could become more difficult, even as the original regulated market faces higher costs.

The proposal places France’s approach to stablecoins at the intersection of taxation, market access and oversight. Further details would be needed to assess how broadly the measure would apply and how traders and service providers might respond.

Source: Coindesk