France cuts off more than half of cryptocurrency taxes on capital gains, encouraging citizens to invest and profit from the market.
The French Council of State, the advising body for legal governmental matters and which acts as the Supreme Court for administrative matters, announced on Thursday that it has changed the classification of cryptocurrency capital gains to the gains of “movable property”. As a result, the council lowered the cryptocurrency tax rate to 19 percent from 45 percent, rewriting the rules that had been implemented since 2014.
The announcement came at just the right time for crypto investors when Bitcoin is trading smoothly above $9,000 while the other top 10 virtual currencies are also in the green zone.
Prior to the new rules, gains from sale of cryptocurrencies was considered as “industrial and commercial profits” while those from traditional transactions as “non commercial profits.”
The new ruling is just what every crypto investor ever dreamed of however, there are still some exceptions. For instance, the new tax rule is only focused at the gains that come from investments which means that the profits made from crypto mining and other commercial activities will still “fall under provisions relating to other categories of income” that is they will be taxed at the original rate.
France’s stance regarding cryptocurrencies
Note that, it was Bruno Le Maire, France’s Finance Minister who suggested the discussion of cryptocurrencies at the G20 summit held earlier this year. As France is strengthening its position in finetech and broadening participation in the industry, the French government has progressively started accepting Bitcoin and other digital currencies.
Le Maire wants France to take the lead with regulation, which he refers as “cryptocurrency revolution” and also wants his country to become a hub for blockchain innovations that include ICOs (licensed and non-licensed).
President of France, Emmanuel Macron also seems to embrace Bitcoin as he was earlier seen holding a Bitcoin hardware wallet, according to a CCN report.
In addition, last year, the French government also gave a green signal to banks for adding support for blockchain-powered trading of unlisted securities.