👨🏻✈️France proposes taxing Bitcoin and Crypto
French Senator Sylvie Vermeillet recently made a controversial proposal by classifying BTC and other digital assets as "inefficient." According to her, these assets should be taxed similarly to luxury goods or vacant real estate.
The bill proposes that BTC and cryptocurrencies will be subject to capital gains tax on unrealized profits if the total value exceeds the threshold of 800,000 euros (equivalent to 844,634 USD).
Notably, the proposal has passed a preliminary vote in the Senate and received support from French Finance Minister Laurent Saint-Martin. He asserted that this change would make the tax system fairer, especially regarding profits from cryptocurrency assets.
If the law is officially passed, cryptocurrency investors in France will have to report foreign crypto assets annually. Penalties for failing to report will range from 750 to 1,500 euros (equivalent to 791 USD – 1,583 USD), putting significant pressure on those holding digital assets.
This proposal has sparked strong opposition from the crypto community, as many are concerned that the new regulations will diminish France's competitiveness in the blockchain technology sector. Opponents argue that heavy taxation could drive investors away from the French market, harming the development of the cryptocurrency industry in the country.
Source: Allinstation
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