TLDR
- French lawmakers voted 163-150 to advance an amendment taxing crypto as unproductive wealth.
- The measure classifies digital assets alongside gold, yachts, and luxury items for taxation purposes.
- Centrist MP Jean-Paul Matteï filed the amendment on October 22 with cross-party support.
- The crypto tax applies a flat 1% rate to unproductive wealth exceeding €2 million.
- The threshold increased from the current 1.3 million euros under existing wealth tax laws.
French lawmakers have approved an amendment targeting crypto holdings with new wealth taxes. The National Assembly passed the proposal with 163 votes in favor and 150 against on Friday. The measure classifies digital assets as unproductive wealth alongside gold and luxury items.
New Tax Framework Targets Digital Assets
Centrist MP Jean-Paul Matteï submitted the amendment on October 22 to reform France’s tax laws. The proposal expands the definition of taxable assets to include cryptocurrencies and other non-productive holdings. Socialist and far-right MPs joined forces to support the crypto tax measure.
The amendment must navigate additional legislative hurdles before becoming law in 2026. The Senate will review the proposal as part of the budget approval process. Lawmakers aim to finalize the budget framework by the end of the year.
Matteï argued that current real estate wealth tax laws contain economic inconsistencies. The existing system exempts items such as gold, classic cars, and yachts from taxation. He stated the crypto tax would encourage productive investment in the French economy.
Threshold and Rate Structure
The new crypto tax applies to individuals holding unproductive wealth exceeding €2 million. This represents an increase from the current threshold of €1.3 million. Authorities will charge a flat rate of 1 percent on assets above this limit.
Current real estate wealth taxes follow a progressive structure with varying rates. Assets below 800,000 euros face no taxation under existing rules. The rate reaches 1.5% for holdings above 10 million euros.
The amendment groups digital assets with precious objects, planes, and non-productive real estate. These categories now fall under the category of unproductive wealth for tax purposes. The flat rate system replaces the progressive taxation model for these assets.
Industry Response and Concerns
Éric Larchevêque, co-founder of Ledger, criticized the crypto tax proposal on Saturday. He stated the amendment “punishes all savers who wish to anchor themselves financially.” The measure equates cryptocurrency with unproductive reserves that are not valuable to the economy.
Larchevêque warned that French crypto holders may need to sell their assets to cover tax payments. This situation could arise if holders lack other liquid assets available to them. He expressed concern that authorities might lower the 2 million euro threshold later.
The Ledger co-founder called the crypto tax a significant ideological error. He described it as revealing a shift in fiscal policy against holding value outside fiat systems. The political message suggests digital assets lack economic productivity, according to lawmakers.
The crypto tax amendment disappointed local digital asset enthusiasts across France. Industry figures view the measure as targeting legitimate wealth preservation strategies. The legislation still requires Senate approval before it can be implemented on January 1, 2026.
Larchevêque noted the probability remains strong for the crypto tax to take effect. The legislative process continues as lawmakers debate the 2026 budget provisions. French authorities maintain the measure will encourage more productive economic investments.
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