• NOW

News

  • NOW

Vive la France! Bitcoin Tax Slashed by Republic

According to Le Monde, France’s State Council of taxation has announced a severe lowering of financial penalties on gains from cryptocurrencies such as bitcoin. The agency is signaling crypto tax will plummet from its current 45% to an across the board flat 19%. It’s a dramatic change in orientation from the government. Could it be France is ready for a decentralized, digital financial future?

Also read: Telegram Urges Paper Airplane Protest, Pussy Riot Activist Arrested

France Lowers Crypto Tax

It has been an active year so far for La République. Bruno Le Maire, Minister of Finance, argued a month ago how, “A revolution is underway, of which bitcoin was only the precursor. The blockchain will offer new opportunities to our startups, for example with the Initial Coin Offerings (ICO) that will allow them to raise funds through ‘tokens,’ crypto-actives or not. It promises to create a network of trust without intermediaries, to offer increased traceability of transactions and, overall, to make the economy more efficient,” setting off a wave of enthusiasm from bitcoiners.

Vive la France! Bitcoin Tax Slashed by Republic
Mr. Macron with a Ledger Blue

For at least four years, however, the Republic of France has kept taxation on bitcoin core and cryptocurrency capital gains in general at nearly half. There appears to be a softening in this regard, as regulators responded to pushback by enthusiasts, and have pledged to bottom the current rate, 45%, by more than half, to 19%.

Good news started, perhaps, back in early 2017 after France elected the very young Emmanuel Macron, then 39. While the ecosystem has no political affiliation or loyalty, Mr. Macron gave an encouraging sign by allowing himself to be photographed with a cold storage wallet. It would later be revealed as a publicity stunt prior to his run. But, nevertheless, he at least seemed familiar with the technology.

An Active First Quarter

Again, during the first quarter of this year France has expended more political calories on the issue of crypto. Beginning with an appointment of an industry “Mission Leader,” France was particularly vocal about carrying forth some kind of world consensus on laws governing crypto (to no avail) ahead of the G20 meeting in Argentina. Shortly after, French minders cracked down upon crypto derivatives, and would a month later publish warnings about 15 “unauthorized” exchanges and platforms.

Vive la France! Bitcoin Tax Slashed by Republic

Around the same time as comments from the Minister of Finance and various regulatory activity, local bitcoiners took their case to the High Administrative Court. The court then ordered cryptocurrencies such as bitcoin be reclassified as property, thus leaving room for lower taxation. Profits derived from mining, however, are to remain under the banner of capital gains, as they’re considered purely commercial activities.

Do you think this will start a trend among EU countries? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

Tags in this story
Bitcoin, Blockchain, Bruno Le Maire, capital gains, Cold Storage, Cryptocurrency, Emmanuel Macron, France, G20 Argentina, Ledger, N-Featured, Regulation, Tax
Related
Bogota's EXMA 2019 Will Feature Bitcoin Cash Payments at Home Burgers

At this year’s EXMA conference in Bogota on May 27-28, attendees will find that payment processor Pagos Inteligentes will allow… read more.

Telecom Giant AT&T Now Accepts Bitcoin Cash Payments

On May 23, telecom giant AT&T announced that customers can now pay their bills through Bitpay. The firm has become… read more.

C. Edward Kelso

C. Edward Kelso has written hundreds of articles as a journalist covering a range of topics from international finance, regulation, to cryptocurrency philosophy, interviews with luminaries, and book reviews.