The French government has proposed a new tax targeting "unproductive wealth," including cryptocurrencies, luxury goods, and unused real estate.
Senator Sylvie Vermeillet’s plan, set for the 2025 budget, aims to classify Bitcoin and other digital assets as non-productive, making them subject to taxation alongside luxury items and vacant properties.
JUST IN: 🇫🇷 France to tax #Bitcoin unrealised capital gains. pic.twitter.com/8zsehL05f4
— Bitcoin Archive (@BTC_Archive) December 3, 2024
Under the proposal, unrealized crypto gains and digital assets held in custody worth over €800,000 would be taxed. However, crypto-to-crypto transactions would remain tax-free. Fines for failing to report foreign crypto holdings range from €750 to €1,500.
The proposal, already approved by the Senate in a preliminary vote, has been endorsed by French Finance Minister Laurent Saint-Martin, who argues it ensures fairer taxation between digital and physical assets.
While supporters claim the tax could boost market participation, critics warn it could reduce investor interest and increase price volatility. If passed, crypto holders would need to report foreign accounts annually using the Cerfa 3916-bis form, with penalties for non-compliance.
The new rules also cover crypto activities like lending and staking, and failure to report could lead to audits.
Efforts to create a clear legal framework for U.S. stablecoins took a hit this week after the Senate failed to push forward a key piece of legislation.
Coinbase CEO Brian Armstrong is pressing U.S. lawmakers to revive momentum behind the GENIUS Act, a bipartisan bill aimed at introducing federal oversight for stablecoins.
A controversial stablecoin bill is now facing mounting opposition in Washington, with Senator Elizabeth Warren leading the charge against what she calls a pathway to “crypto corruption.”
Starting in 2027, the European Union will enforce strict anti-money laundering laws that effectively outlaw anonymous crypto activity.