France Targets Bitcoin and Crypto with New “Unproductive Wealth” Tax

France’s National Assembly recently voted to advance an amendment that would impose an annual tax on “unproductive assets,” including cryptocurrencies, held by residents with over €2 million in such assets. The proposed 1% tax applies to the total value of these assets, including unrealized gains, meaning holders could be taxed even if they haven’t sold their crypto. This move has sparked strong opposition from crypto leaders like Éric Larchevêque, who argue it punishes savers and hinders financial innovation. The tax is part of a broader, and somewhat contradictory, approach to crypto in France, as lawmakers simultaneously consider a bill to create a national Bitcoin reserve. The amendment still requires Senate approval, but if passed, it could significantly impact the French crypto market and potentially drive investors to more crypto-friendly jurisdictions. France is also increasing regulatory scrutiny of crypto exchanges, with a low approval rate for full authorization.

(Source：Brave New Coin)