France Crypto Tax: Tiered Levy on Holdings Over €2M
France’s lower house has approved a landmark France crypto tax amendment that introduces a tiered levy on crypto holdings. Under the France crypto tax, portfolios exceeding €2 million will face a 1% annual levy, rising to 1.5% for holdings over €10 million. Digital assets are now classed as unproductive wealth, similar to gold and luxury goods. The tax targets unsold crypto, aiming to nudge investors toward productive investments like rental properties, which remain exempt.
Proposed by MP Jean-Paul Mattei and passed 163–150, the measure includes no carve-outs for founders or tokens from business incentives. Critics warn of capital flight and penalising ecosystem builders. Traders should prepare for new compliance requirements, keeping detailed records of acquisition costs and valuations. The bill now moves to the Senate, with final adoption expected by December 31, 2025. Market participants must monitor implementing decrees to understand future reporting rules and liquidity impacts.
Bearish
The France crypto tax introduces annual levies on large crypto portfolios, increasing holding costs. Anticipation of the tax may lead high-net-worth investors to liquidate positions, triggering selling pressure. The lack of exemptions amplifies capital flight risks, potentially reducing market liquidity. Over the long term, clear tax rules could stabilize the market, but the additional burden is likely to dampen demand and price growth, making the overall impact bearish for the affected cryptocurrencies.