**The Vote That Shocked the Crypto Community: France’s New Crypto Wealth Tax**
On October 31, 2025, France’s National Assembly narrowly voted 163-150 to advance a controversial amendment that could drastically reshape how cryptocurrency is taxed in the country. Proposed by centrist Member of Parliament Jean-Paul Matteï on October 22, the measure unexpectedly gained support from socialists and far-right politicians alike.
While the amendment is not yet law—it still requires approval from France’s Senate as part of the 2026 budget negotiations—industry experts believe it stands a strong chance of passing and potentially taking effect on January 1, 2026.
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### How the Tax Would Work
Under the proposed system, French residents who hold more than €2 million (approximately $2.3 million) in “unproductive assets” would be subject to a flat 1% annual tax. The government classifies cryptocurrency as unproductive because, unlike businesses or other investments, it does not directly create jobs or contribute to economic activity.
This tax would apply to the total value of these assets, including unrealized gains—that is, profits that exist on paper but have not been cashed out. For example, someone holding Bitcoin valued at €3 million would owe €10,000 in taxes each year, representing 1% of the €1 million exceeding the threshold, regardless of whether any crypto assets were sold.
Besides digital currencies, the tax would also target luxury goods such as classic cars, gold, artwork, private planes, and vacation properties. The French government argues these items do not stimulate economic growth in the same way productive investments do.
Currently, France’s real estate wealth tax uses a progressive system starting at €800,000, with rates climbing to 1.5% for assets over €10 million. The new amendment would simplify this to a single 1% tax rate, raise the threshold to €2 million, and expand the list of taxable assets.
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### Strong Opposition from Crypto Leaders
Éric Larchevêque, co-founder of the crypto wallet company Ledger, criticized the amendment sharply, saying it “punishes all savers who wish to financially anchor themselves to gold and Bitcoin in order to protect their future.” He expressed particular concern that the €2 million threshold could eventually be lowered, affecting a broader group of investors.
Another major worry is that many crypto holders might be forced to sell their digital assets merely to cover the tax bill, especially if their wealth is mostly illiquid cryptocurrency. Financial analysts estimate that up to 50,000 French residents could be impacted by this tax.
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### France’s Contradictory Crypto Strategy
What makes France’s approach especially perplexing is the simultaneous pursuit of two contrasting crypto policies.
While lawmakers voted to tax crypto as an unproductive asset, another group introduced a bill proposing the creation of a national Bitcoin reserve consisting of 420,000 BTC—roughly 2% of Bitcoin’s total supply. This reserve would be built over seven to eight years via state-funded mining operations and seized cryptocurrencies.
The reserve bill, spearheaded by the right-wing Union des droites pour la République party, also suggests allowing citizens to pay certain taxes in Bitcoin and creating exemptions for euro-stablecoin payments up to €200 daily. This policy treats Bitcoin as a strategic national asset, akin to gold reserves.
These contradictory proposals reveal deep divisions within France regarding cryptocurrency’s role: one path treats it as idle luxury to be heavily taxed, the other views it as a pillar of monetary sovereignty.
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### Tougher Enforcement Already Underway
France is not waiting for these proposals to become law before cracking down on cryptocurrency.
The country’s banking regulator has ramped up extensive anti-money laundering checks on Binance and numerous other exchanges. Furthermore, French authorities have advocated for centralized European Union oversight of crypto platforms.
To date, only four out of more than 100 registered crypto service providers in France have received full authorization—a mere 4% approval rate. These companies must meet all regulatory requirements by June 2026 or risk losing access to the entire EU market.
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### The Road Ahead
The wealth tax amendment now moves to the French Senate for debate, where lawmakers might refine key definitions—such as what qualifies as “digital assets”—or introduce exceptions for productive uses of crypto, like staking or business operations.
If both the wealth tax and Bitcoin reserve proposals pass, France could adopt a puzzling dual system: private crypto holdings would be treated as taxable luxury assets, while government-held Bitcoin would be elevated to sovereign wealth status.
Other European countries—including Switzerland, Spain, and Norway—already impose annual taxes on crypto wealth, so France would not be entirely unique. However, its combination of taxing unrealized gains alongside building a national Bitcoin reserve creates an unprecedented and controversial stance.
Industry groups warn that heavy taxation without a supportive regulatory framework could drive crypto businesses and investors to relocate to more crypto-friendly jurisdictions. This would result in a loss of tax revenue and stifle innovation in a rapidly growing global industry.
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### A High-Stakes Gamble
France is making a bold wager with its proposed “unproductive wealth” tax. The government aims to generate revenue and encourage investors to shift toward traditional, productive assets.
However, there is a significant risk: the policy could push away a thriving crypto sector and send a message that France is hostile to digital innovation.
Whether this approach will succeed or serve as a cautionary tale for other nations depends on how lawmakers refine the proposal and balance the need for government revenue with creating an attractive environment for emerging technologies.
For now, French crypto holders are watching nervously as their investments hang in political limbo.
https://bitcoinethereumnews.com/bitcoin/france-targets-bitcoin-and-crypto-with-new-unproductive-wealth-tax/?utm_source=rss&utm_medium=rss&utm_campaign=france-targets-bitcoin-and-crypto-with-new-unproductive-wealth-tax
