France Advances Tax Proposal Targeting Crypto as “Unproductive Wealth” – Will it Pass the Senate Vote?

France Moves to Tax Crypto as "Unproductive Wealth"

The French government has taken a concerning step in their ongoing efforts to regulate the cryptocurrency industry. The country's National Assembly has passed an amendment that redefines digital assets as a form of "unproductive wealth," effectively putting crypto in the same category as luxury items like yachts and fine art. This controversial move could pave the way for the taxation of unrealized crypto gains - a concerning prospect for French Bitcoin and altcoin investors.

The proposed legislation would empower French tax authorities to levy a wealth tax on the country's crypto holders, potentially forcing them to pay taxes on the fluctuating value of their digital asset portfolios, even if they haven't sold or realized any gains. This drastic measure could have a chilling effect on France's crypto ecosystem, discouraging investors and innovators from participating in the burgeoning digital asset market.

The amendment must still pass a vote in the French Senate before becoming law, but its passage through the National Assembly indicates a shifting regulatory climate that views cryptocurrencies with increasing skepticism. As other nations around the world grapple with how to appropriately tax and govern the crypto space, France's approach stands out as particularly heavy-handed, potentially undermining the financial freedom and innovation that the crypto industry represents.

Crypto enthusiasts and investors in France will be closely watching the progress of this legislation, concerned that it could set a concerning precedent and trigger a domino effect of similar "unproductive wealth" taxes on digital assets across Europe and beyond.