France Crypto Tax Hits Large Holdings as “Unproductive Wealth”

France has voted to tax large cryptocurrency holdings, calling them “unproductive wealth,” reports Coin Bureau. The new law marks a significant step in how France treats digital assets. It also signals that the government wants wealthy citizens to use their assets more productively.

What the Law Means

Under the new law, individuals who hold big amounts of crypto, along with other high-value items like yachts, luxury cars and unused properties, may have to pay a new tax. Lawmakers say the goal is to tax assets that don’t actively contribute to the economy.

The tax will apply to people with total net assets over €2 million, at a rate of 1%. Previously, France only taxed real estate wealth. Now, cryptocurrencies and other idle assets fall under the same rules. This law targets wealth that grows without being invested in business, innovation, or other productive activities.

How Crypto Holders Are Affected

Crypto investors in France now face new rules. Even if they haven’t sold their crypto, their holdings count toward the tax if the total exceeds €2 million. The government will expect residents to report all assets, including foreign wallets and exchanges.

Before this law, France taxed crypto mainly when people sold it and made a profit. Now, even unrealized gains, the increase in value of holdings you haven’t sold, may count toward your taxable assets. That means crypto investors need to carefully track their wealth.

Why the Government Supports It

Supporters say this law makes taxes fairer. They argue that taxing unproductive wealth encourages people to use their money more actively in the economy. By including crypto, France also closes a gap that some wealthy citizens used to avoid taxation.

Lawmakers believe the tax can generate extra revenue for public services. They also hope that it discourages people from holding huge sums of money in assets that don’t benefit the economy.

Criticism and Concerns

Some people worry the law may discourage innovation. Crypto and other digital assets often fund new startups and projects. Critics also say wealthy individuals can find ways to avoid the tax, leaving smaller investors to bear the burden.

Others fear that labeling crypto as “unproductive” may push investors to move their funds out of France. Many warn that overregulation could slow the country’s growth in the digital economy.

What Investors Should Do

If you hold huge amounts of crypto in France, you should calculate your total assets carefully. Track the value of your holdings on the reference date set by the government. Make sure to report all wallets and accounts, including those overseas. Consulting a tax professional can help you avoid mistakes and penalties.

A New Era for Crypto Taxation

France’s crypto tax shows that governments are taking digital assets seriously. For investors, it means that crypto is no longer just about trading profits. Governments now consider it part of overall wealth, and tax rules are catching up.

The key message is clear, that  French crypto holders must plan ahead, stay informed and ensure they comply with the new rules.