In a bold pivot for digital asset regulation, the National Assembly of France has approved a controversial amendment that could redefine how cryptocurrencies are taxed—particularly for major holders. In this article you’ll learn what the measure involves, who it affects, and how it may reshape the crypto landscape.
What Has Been Decided?
The Assembly voted 163 to 150 in favour of an amendment that classifies cryptocurrencies alongside gold, yachts and art as “unproductive wealth” — assets deemed not to contribute directly to economic activity.
Under the proposal:
- A flat 1% tax would apply to “unproductive” holdings exceeding €2 million.
- The threshold is raised from the previous €1.3 million and the tax style shifts from a progressive scheme to a simpler flat rate.
- The law must still clear the French Senate and be included in the 2026 budget before taking effect.
Why Does This Matter?
For crypto investors
This move means large holders of assets like Bitcoin or Ethereum may face a tax liability without selling a single coin — simply by holding above the threshold. Some experts warn this could force illiquid investors to sell assets in poor market conditions.
For France’s crypto ecosystem
Industry voices argue the move sends a chilling signal. Éric Larchevêque of crypto-wallet maker Ledger calls it “punishing savers who anchor their assets in gold or Bitcoin.”
For broader regulation
France moves into new territory by treating crypto holdings like a wealth tax base. If enacted, this may set a precedent in the EU for how digital assets are treated in tax regimes.
Potential Risks & Implications
- Liquidity squeeze: Holders of illiquid crypto or assets may struggle to pay a tax bill without triggering asset sales.
- Capital flight: Wealthy investors may shift to jurisdictions with more favourable crypto tax treatment.
- Valuation and compliance complexity: Accurately assessing a wallet’s value — especially offline or decentralized holdings — presents operational challenges.
- Uncertainty for businesses: Crypto firms and start-ups face a shifting landscape — what counts as “productive” vs “unproductive” wealth may reshape business models and investment flows.
Conclusion
The French National Assembly’s decision to tax large crypto holdings as unproductive wealth marks a notable regulatory turning point. Investors, firms and policymakers now face a new reality: holding digital assets may trigger taxes without a sale, and jurisdictions nationwide will watch how France proceeds. If you hold or do business in crypto, it’s time to review your exposure and tax planning.
