In a significant move for the cryptocurrency landscape in France, the National Assembly has approved an amendment that reclassifies cryptocurrencies as unproductive wealth. This decision, which has sparked debate within the crypto community, aims to align digital assets with traditional non-productive investments. The source reports that this change could have far-reaching implications for how cryptocurrencies are taxed and regulated in the country.
Introduction of Flat Tax on Crypto Holdings
The amendment, championed by centrist deputy Jean-Paul Matte, introduces a flat tax rate of 1% on crypto holdings that exceed 2 million euros. This new tax structure places cryptocurrencies in the same category as luxury items such as yachts and gold, reflecting a shift in how the government views digital assets. The vote concluded with a narrow margin of 163 in favor and 150 against, highlighting the contentious nature of the issue.
Awaiting Senate Endorsement
Despite the Assembly's approval, the amendment still awaits the Senate's endorsement before it can be implemented in early 2026. The crypto industry has voiced strong concerns regarding this legislation, arguing that it sends a negative signal towards digital innovation. Critics warn that the new tax could force investors into liquidating their assets to meet tax obligations, particularly those who may not have the liquidity to cover the unexpected liabilities.
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