France is stepping up its efforts to regulate cryptocurrency, particularly in relation to taxation.
Government Targets Crypto Assets
Remember, the French administration is in the process of crafting financial legislation tailored to crypto assets. Compelled by an increasing need to combat public aid fraud and non-declaration of cryptocurrency holdings, the country’s legislative agenda includes this proposed law.
Ministerial Announcement
The Minister of Public Accounts, Thomas Cazenave, recently unveiled the administration’s legislative strategy. The coming weeks should see the proposed law debated among representatives and senators, with its potential implementation by the fall, aligned with discussions around the budget law for 2025.
High Stakes for Crypto Users
According to the European Central Bank, around 5 million French citizens are cryptocurrency users. Surprisingly, only 150,000 reportedly declare their holdings correctly. Non-compliance could result in severe penalties. Failure to disclose cryptocurrency assets might attract a penalty of up to 40%. Worse still, this could skyrocket to 80% in the event of a tax audit.
Crypto Laws in Line With Foreign Accounts
Let’s not forget that cryptocurrency controls are a top priority for the French Ministry of Economy. This will be reflected in the forthcoming anti-fraud legislation. The Public Accounts Minister’s goal is to bring cryptos under the same scrutiny as foreign held accounts, regarding audit periods, controls, and penalties.
