Bitcoin as “Unproductive Wealth”
France is stirring controversy in the crypto world. Senator Sylvie Vermeillet has proposed classifying Bitcoin and other cryptocurrencies as "unproductive assets," potentially subjecting holdings over €800,000 to taxes on unrealized gains under the 2025 budget. The proposal likens cryptocurrencies to luxury goods or vacant properties, implying their ownership could attract a wealth tax. Critics argue this move fails to account for the inherent volatility of digital assets and could deter innovation.Industry Voices Push Back
Alice Stork, a Paris-based Web3 marketer, called the tax “worrying” and "out of touch" with the unpredictable nature of crypto markets. “What happens when the value drops after you’ve paid taxes on gains you didn’t realize?” she questioned, warning that such measures may drive entrepreneurs and businesses out of France. Sébastien Martin, CEO of crypto risk management firm RAID Square, noted Vermeillet’s political clout as Vice President of the Senate and member of the Macron-aligned Parti Radical. The tax measure has already passed a preliminary Senate vote and received support from Finance Minister Laurent Saint-Martin, who described it as a step toward a "balanced" tax system.Potential Implications for Crypto Holders
If implemented, French crypto investors will face stricter compliance requirements, including annual reporting of foreign crypto holdings via the Cerfa 3916-bis form. Failure to report could result in fines ranging from €750 to €1,500. France’s proposal aligns with increasing scrutiny of the crypto space. Recent actions include banning Polymarket, a prediction market platform, and ByBit’s exit from the French market due to regulatory hurdles under Europe’s MiCA legislation.A Chilling Effect on Crypto?
While proponents claim the tax reform will streamline wealth taxation, critics argue it’s a step backward for a country aiming to lead in tech innovation. The crypto community will be watching closely to see if this measure becomes law—and how it shapes France’s blockchain ecosystem.
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