Nikolas Sargeant
French lawmakers have taken a significant step toward expanding the country's wealth tax to include cryptocurrency holdings, with the National Assembly passing an amendment that classifies digital assets as "unproductive wealth." The measure, filed by centrist MP Jean-Paul Matteï, passed with a vote of 163-150 late Friday with support from socialist and far-right members of parliament. The amendment would tax assets including crypto, gold, classic cars, yachts, and art that currently fall outside France's existing real estate wealth tax framework.
Under the proposed law, individuals holding more than 2 million euros in unproductive assets would face a flat tax rate of 1 percent on amounts exceeding that threshold. Matteï argued that the current system is economically inconsistent for excluding certain asset classes that don't contribute to the dynamism of the French economy. The new tax structure represents a shift from the current progressive real estate wealth tax, which ranges from zero percent to 1.5 percent depending on asset value.
The amendment has sparked criticism from French crypto advocates who view the measure as ideologically misguided. Ledger co-founder Éric Larchevêque expressed concern that the law punishes savers seeking to protect their wealth through Bitcoin and gold, arguing that it reveals a broader fiscal agenda to discourage holding value outside the traditional fiat monetary system. He warned that crypto holders without other liquid assets may be forced to sell their holdings to pay the tax.
The measure still faces several legislative hurdles before becoming law, including passage through the French Senate as part of the 2026 budget process. If enacted, the tax would take effect on January 1, 2026, though critics fear the 2 million euro threshold could be lowered in subsequent revisions.
Global Crypto Tax Landscape Shifts
France's proposed tax expansion comes amid diverging regulatory approaches worldwide. Japan is moving in the opposite direction, with the Financial Services Agency requesting a reduction in cryptocurrency taxation from rates between 15 and 56 percent to a flat rate of approximately 20 percent. The proposed changes would treat digital assets similarly to stocks, potentially cutting tax burdens by more than half for many investors as the country positions itself as a crypto-friendly hub in Asia.
Meanwhile, Brazil has tightened its crypto taxation framework by eliminating its previous exemption system. Under Provisional Measure 1303, which took effect in June 2025, all cryptocurrency transactions now face a flat 17.5 percent capital gains tax with no exemptions. The change ended Brazil's previous policy that allowed tax-free trading on profits up to 35,000 Brazilian reals monthly, marking a significant shift toward increased revenue collection from digital asset activities.
