France’s National Assembly Rejects Latest Cryptocurrency Tax Amendments
The National Assembly of France seems to have taken a negative stance towards virtual currencies. The Assembly took the decision to reject friendly tax amendments that were aimed at lowering taxes for crypto traders. The information was released by local media at the beginning of the week.
The French National Assembly rejected the proposal that increased annual tax exemption from €305 to €3,000 or €5,000. The Assembly explained that taking into account security taxes, this increase seems excessive.
Furthermore, capital gains will not follow the same rules as securities. Another amendment rejected was the proposal to tax virtual currencies when they are sold and withdrawn to a bank account rather than taxing them directly on the exchange platform.
At the moment, cryptocurrencies are taxed at 36.2 percent derived from 19 percent income tax and 17.2 percent social contributions. This allows the legal framework to be simple and easy to understand.
Countries around the world are trying to better understand how to tax and treat Bitcoin and virtual currencies. There are some countries, such as Malta, that have decided to take very favourable positions in terms of virtual currencies and blockchain technology. However, other nations such as China have decided to completely ban crypto-related activities.
What is clear is that during 2019, new regulations will enter into force in several countries in Europe and around the world. The United States and its regulatory agencies will also have a moved year in front.