France Proposes Taxation of Unrealized Gains on Cryptocurrencies

• France proposes taxing unrealized gains on cryptocurrencies
• Investors can be taxed without selling digital assets
• Measure could influence global tax policies on crypto assets

The French Senate is debating a proposal that would tax unrealized gains on cryptocurrencies such as Bitcoin. Currently, investors are only taxed when they sell their digital assets and realize a profit. Under the new measure, even without the sale, any increase in the value of crypto assets would be subject to taxation.

🇫🇷 France Proposes Tax on Unrealized Crypto Gains. # Bitcoin has been discussed by the French Senate, aiming to include digital assets under wealth tax.

This measure, suggested in discussions, would tax gains before assets are sold. pic.twitter.com/nRSfx5K0pi

— The Crypto Times (@CryptoTimes_io) December 3, 2024

This initiative comes amid global discussions about the regulation and taxation of digital assets. Governments in different countries are looking for ways to integrate cryptocurrencies into their tax systems, considering them in different ways: some equate them to traditional investments, while others propose specific rules for these emerging assets.

In the United States, for example, taxes on cryptocurrencies are only levied when the assets are sold for a profit. However, debates similar to the one in France are gaining ground, indicating a possible global trend towards reviewing tax policies related to cryptocurrencies.

For French investors, the approval of this proposal would represent a significant change. They would have to pay taxes on potential gains, even without the actual sale of the assets. Although the aim is to ensure fair taxation, this measure could discourage investment in cryptocurrencies, due to the additional complexity in tax management.

Currently, in France, capital gains from the sale of cryptocurrencies are taxed at a flat rate of 30%, which includes 12,8% income tax and 17,2% social contributions. Additionally, crypto-to-crypto transactions are not considered taxable events, encouraging portfolio diversification without immediate tax penalties.

The proposal to tax unrealized gains is still under discussion in the French Senate, with no final decision yet. Investors and cryptocurrency enthusiasts are closely awaiting developments, aware that approval could set an influential precedent for other countries in their approach to taxing digital assets.

If implemented, this measure will require investors to pay extra attention to monitoring the appreciation of their digital assets, even without the intention of selling them, in order to comply with tax obligations. The crypto community remains vigilant, assessing the possible impacts of this change on the global cryptocurrency landscape.