TL;DR:
- France has approved a tax classifying cryptocurrencies as unproductive wealth.
- The rule could drive investors away and dampen blockchain innovation.
- Lawmakers argue it ensures fairer taxation across asset classes.
France has taken another bold step in redefining how digital assets are viewed under its tax framework. A newly approved amendment has officially classified cryptocurrencies as unproductive wealth, a move that has ignited strong reactions across the crypto community. The decision places holders of digital assets under the same bracket as individuals with idle, non-productive capital, significantly changing the tax landscape for investors.
France’s tax shift sparks concern among crypto investors
The amendment, backed by members of France’s National Assembly, aims to capture untapped tax revenue from digital assets that do not contribute directly to economic activity. Under this new framework, cryptocurrencies will be subject to taxation similar to real estate and other passive assets. Lawmakers argue that crypto holdings, when not used in productive activities such as business financing or innovation, fall into the category of unproductive wealth.
However, the crypto community has raised alarms over the potential impact on innovation and investment. Critics argue that this move could discourage holding or developing blockchain projects within France, pushing investors to move their capital offshore. Some analysts warn that the policy risks stifling technological progress at a time when global markets are increasingly embracing digital transformation.
Despite the pushback, French lawmakers remain firm in their stance. They claim that taxing idle crypto wealth ensures fairness across financial systems, aligning digital assets with traditional forms of capital. The government insists that the measure is not designed to punish investors but to promote a more equitable distribution of wealth. Still, many in the crypto ecosystem view it as a step backward for Europe’s digital economy.
As the amendment moves into implementation, France’s decision could set a precedent for other EU countries, reshaping how digital wealth is perceived and managed. For now, investors are left balancing their portfolios with caution, anticipating how deeply the new tax will affect their holdings and the broader crypto market.
