France’s New Wealth Tax Targets Cryptocurrency Holdings
- France’s National Assembly passed Amendment No. I-3379 by a narrow vote of 163-150.
- The amendment imposes a flat 1% annual tax on net wealth exceeding $2.2 million, including cryptocurrency holdings.
- Experts criticize the lack of distinction between passive investors and ecosystem builders, potentially penalizing innovation.
- The bill replaces France’s previous 30% sale-only crypto tax with an annual levy on holdings.
The new wealth tax amendment in France targets digital assets as part of “unproductive wealth,” sparking concerns about its impact on innovation and talent retention in the crypto sector. The measure could drive technological progress away from France due to its broad application without exemptions for long-term project alignment or business activities.
This legislative change marks a significant shift from taxing only sales to taxing all holdings, potentially accelerating capital flight as investors seek more favorable jurisdictions for their token-based assets. Source
