French lawmakers debate taxing unrealized capital gains on Bitcoin and other cryptocurrencies, aligning them with other non-productive assets.
France Considers Taxing Bitcoin’s Paper Gains
French senators are discussing a tax on unrealized Bitcoin gains, marking a shift in cryptocurrency taxation. The new proposal would classify cryptocurrencies like Bitcoin as “non-productive property,” similar to dormant real estate and luxury items, under a proposed unproductive wealth tax.
Unrealized Gains Tax Explained
The tax would apply even when Bitcoin and other assets have not been sold. This contrasts with the current system, where taxes are levied only after assets are sold for a profit. Senator Sylvie Vermeillet, who sponsored the bill, believes this would create parity between cryptocurrency and other wealth assets.
Global Context for Crypto Taxation
This move follows global debates on how to tax digital assets. Other countries, like Germany and Portugal, have different approaches, with some offering tax exemptions for long-term holdings. In contrast, the U.S. taxes crypto only when it is sold.
Senate Vote and Next Steps
The proposal passed a preliminary vote, but broader consensus and approval from the National Assembly are still required before it can become law. This shift reflects growing international efforts to regulate the crypto space and ensure fair taxation.
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