What is this French politician’s solution to the country’s crypto-tax regime
Mass adoption of cryptocurrencies is determined not only by an expansion of the user base, but also by an inclusive policy and tax regime.
A French politician has now offers a relaxation of the country’s current tax obligations on cryptocurrencies. This could prompt citizens to increase their use and accumulation of the asset class.
Pierre Person of the French National Assembly recently tabled a series of amendments to the current crypto-asset tax regime that was introduced in 2019. While calling the current tax laws unfair, he said:
“Their adoption would make life easier for holders of crypto assets and enhance the attractiveness of this sector in France.”
In his plan to simplify crypto-taxes in France, Person chose his first area of intervention as the distinction in the qualification of investors as professionals and individuals. Due to the large capital gains generated due to the volatility of crypto-asset prices, many investors fear that they could be classified as professional investors and be taxed up to 70%.
According to Person, this area needs to be simplified. For this, he proposed,
“… The assessment of the professional or non-professional nature of the activity of buying and reselling digital assets should therefore be based more on qualitative criteria.
In addition, he also wants to create a specific tax regime for crypto-payments because those in force are currently very restrictive. Currently, paying for goods and services through crypto creates a tax liability, resulting in lengthy procedural requirements.
Person instead proposed that crypto-payments should not be taxed if their sum does not exceed € 3,000. This would allow users to facilitate transactions through their crypto cards.
To preserve France’s indulgence in the crypto industry, the official also wants the government to allow users to defer their net capital losses for a period of up to 10 years, which is currently to be attributed to the same year.
Additionally, the politician suggested that crypto companies should be exempt from paying taxes after making transactions through virtual currencies. In addition, he demanded that it be easier for French companies to pay their employees and partners with digital assets.
While the regulation of cryptocurrencies in the country is currently the responsibility of the French government, the European Union wants to create a new EU-wide regulatory framework for crypto-assets.
However, this does not suit most European countries very well, with more than half of respondents in a survey preferring governance of their own country instead.