A proposed amendment to the financial bill, which would have created ease in crypto regulated taxations and transactions has been rejected by the Lower Parliament in France.
The amendments have been rejected by the National Assembly, with French Crypto website Bitcoin.fr publishing a detailed report about the ramifications of the amendment. One of the proposed amendments called for a distinction between regular crypto transactions and occasional ones, with a relaxed taxation scheme for the occasional transactions.
Currently, cryptocurrency profits in France are taxed under the category of ‘capital gains’. Subject to be taxed at a combined rate of 19% income tax and 17.2% social contributions, totalling to 36.2%. Cryptocurrency holdings are also used in the calculation of wealth. The proposed amendments would have seen cryptocurrencies to be included in the category of ‘moveable property’ rather than ‘capital gains’ which would have provided a much needed tax break to investors.
Another proposal targeted increasing the annual volume of transactions that fall under tax exemption from €305 (around $350) to €3,000 ($3,430), or even €5,000 ($5,714).
Alexandre Stachtchenko, president of La Chaintech, an association of blockchain association, expressed his disappointment and disdain at the rejection. He explained in the interview, that in rejecting the crypto amendments, the future of crypto transactions in France remains unclear and many traders would not be forthcoming in disclosing their incomes and transactions. The proposed changes to the law were incredibly critical in creating a transparent and easier to comprehend tax rule for crypto transactions.
When asked if he would support French Politician Laure de La Raudière’s bid to reopen the tax amendment file once again in 2019, he stated:
“Of course, we will support any initiative to advance a healthy and vibrant ecosystem. And if it allows to reopen the tax file, why not. But above all I would like to go beyond observatories and reports. We are already in ten official reports, two parliamentary committees, and three observatories this year!”
Laure de La Raudière is one of the politicians pushing for an investment of $500 Million in blockchain technology development in France.
In early 2018, France along with Germany had urged the G20 summit to clamp down on cryptocurrencies. Even as Emmanuel Macron has stated that he wishes for France to be known as a nation of startups, the resistance to cryptocurrency could become a hindrance into that notion.