French Senator Sylvie Vermeillet recently proposed a controversial bill that would classify Bitcoin and other digital assets as "unproductive," subjecting them to taxation like luxury items and vacant properties. The bill, set for the 2025 budget, would impose taxes on unrealized gains exceeding €800,000.
Alice Stork, founder of Paris-based Web3 public relations agency ICL, expressed concerns about the proposed Bitcoin tax on unrealized gains, citing the volatile nature of crypto markets. She questioned the fairness of taxing gains that may later diminish, potentially driving innovators and businesses away from France.
The bill has passed the Senate in a preliminary vote and gained support from Finance Minister Laurent Saint-Martin, who believes the tax change would create a more balanced system. If enacted, French cryptocurrency holders would need to annually report foreign holdings on the Cerfa 3916-bis form, facing fines of €750 to €1,500 for non-compliance.
Sébastien Martin, CEO of French crypto risk management firm RAID Square, highlighted Senator Vermeillet’s political influence as Vice President of the Sénat and a member of the Parti Radical. This backing from prominent political figures signals significant support for the proposed tax legislation.
France’s interest in taxing Bitcoin holdings aligns with ongoing crypto regulation efforts, including the National Gaming Authority’s plan to block platforms like Polymarket. Additionally, regulatory developments following the implementation of Europe’s MiCA crypto legislation led to the departure of Bitcoin exchange ByBit from the French market.
The country faced criticism for the arrest of Telegram founder Pavel Durov on charges related to illegal activities facilitated through the Telegram app. While some viewed the arrest as politically motivated, French President Emmanuel Macron refuted these claims.
As regulatory scrutiny of the cryptocurrency industry intensifies in France, stakeholders are closely monitoring the impact of proposed tax measures on the country’s digital asset ecosystem. Stay tuned for further developments on this evolving regulatory landscape.
Edited by Stacy Elliott.