The French Senate recently approved the 2025 budget, which includes a new “unproductive wealth” tax.
This proposed tax would target a range of crypto assets and apply annually to unrealized gains. In other words, investors could be taxed on the increased value of their crypto holdings—even if they haven’t sold a single coin.
France’s Unrealized Crypto Gains Tax Sparks Heated Debate
The idea of taxing unrealized gains has sparked debates far and wide. Supporters argue it’s a fair way to tax wealthy investors sitting on large, untapped fortunes. Critics, however, call it a slippery slope, claiming it unfairly penalizes those who are simply holding onto their investments.
The next step? A vote in France’s National Assembly, where lawmakers will decide whether this tax gets the green light. If passed, it could set a precedent in Europe, where governments are increasingly focused on tightening crypto regulations.
BREAKING: The 🇫🇷 French Senate has approved the 2025 budget, which includes an “unproductive wealth” tax targeting assets like Bitcoin.
The tax would apply annually to unrealized gains on cryptocurrencies.
The proposal now awaits a vote in the National Assembly. pic.twitter.com/Kg4sdrcZLV
— Bitcoin News (@BitcoinNewsCom) January 26, 2025
France isn’t new to taxing cryptocurrency. Profits from crypto trades are already subject to capital gains taxes. But this new tax goes a step further by targeting unrealized gains—something that hasn’t been widely adopted in other countries. For crypto investors, it could mean a heavier tax burden, even during market downturns.
EU’s Bold Move: Balancing Crypto Regulation and Innovation
This push comes amid broader discussions about regulating digital assets in the European Union. As crypto grows in popularity, governments are looking for ways to ensure the benefits don’t come at the cost of lost tax revenue. Still, taxing unrealized gains is a bold move that could test the patience of crypto enthusiasts.
They are coming for your Bitcoins. Tax on “improductive assets” coming in France. (…it excludes art collections of course)
French Bitcoiners, if the Sovereign Individual is right, it’s time to pack your bags while you can. https://t.co/xHgEZMIv8s pic.twitter.com/moMnph61qN
— Nicolas Dorier (@NicolasDorier) January 26, 2025
The proposal highlights the growing tension between governments and the decentralized financial systems championed by cryptocurrencies. While lawmakers aim to bring crypto into the fold of traditional finance, some argue these moves could stifle innovation and drive investment elsewhere.
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