France is considering taxing Bitcoin and other digital assets as “unproductive” assets, similar to luxury items and vacant properties. The proposed bill classifies cryptocurrencies as unproductive assets for the 2025 budget, which would result in taxes being imposed on unrealized gains exceeding €800,000. This move has raised concerns among industry experts, with some fearing that it could discourage innovation and drive businesses away from France. The bill has already passed the Senate in a preliminary vote and has been supported by the Finance Minister, Laurent Saint-Martin, who believes that the proposed changes will make the tax system more balanced.
If the bill is passed, French cryptocurrency holders would be required to report their foreign crypto holdings annually, with fines ranging from €750 to €1,500 for failing to comply. The proposal has been put forward by Senator Sylvie Vermeillet, who also holds a significant position in French politics, and has received support from influential figures. This move comes as part of France’s efforts to regulate the crypto industry, following other initiatives such as blocking platforms like Polymarket and driving exchanges like ByBit out of the market due to regulatory developments.
Critics have raised concerns about the impact of these measures on the crypto industry in France, suggesting that they could hinder innovation and drive businesses away. Some experts believe that the proposed tax on unrealized gains could be particularly problematic, given the volatile nature of crypto markets. Efforts to regulate the industry, such as blocking platforms and driving exchanges out of the market, have also faced criticism from privacy advocates. Despite these concerns, the French government seems determined to push forward with its plans to tax Bitcoin and other digital assets as part of its broader regulatory efforts.
The debate over taxing Bitcoin and other digital assets as “unproductive” assets highlights the challenges facing regulators in the fast-evolving cryptocurrency landscape. As governments around the world grapple with how to regulate this new asset class, issues such as taxation, reporting requirements, and enforcement measures are becoming increasingly important. It remains to be seen how these proposed measures will impact the crypto industry in France and whether they will achieve the desired regulatory goals. As the debate continues, industry stakeholders will be closely watching to see how the situation unfolds and what implications it may have for the broader crypto ecosystem.
