French Lawmakers Push to Classify Crypto as ‘Unproductive Wealth’ for Taxation
The French National Assembly has a contentious amendment that imposes a new wealth tax on large amounts of cryptocurrencies, including BTC and other digital assets, labelling them “unproductive wealth.”
During talks about the 2026 draft finance bill, moderate MP Jean-Paul Mattei’s proposal was passed by a slim margin, with 163 votes in favour and 150 against.
However, the Senate still needs to review the law before it can be implemented. The new framework will replace the current real estate wealth tax (Impôt sur la Fortune Immobilière, IFI) with a broader tax system (IFI 2.0) that encompasses a range of luxury and passive assets, including cryptocurrency.
The change makes the rate on net assets that are worth more than €2 million a flat 1% per year. This includes digital currencies, expensive cars, yachts, and fine art. The proposal also suggests increasing the tax-free maximum from €1.3 million to €2 million and replacing progressive tax rates with a single 1% tax rate.
Reform Targets “Idle” Wealth to Get More People to Invest
Lawmakers who favour the proposal say that its goals are twofold: to collect tax money from assets that don’t contribute to active investment or economic activity, and to encourage the beneficial use of wealth.
The government aims to prevent people from stockpiling high-value cryptocurrencies by labelling them as “idle” or “unproductive.” It also viewks to encourage people to invest in areas that are considered conducive to
This new tax law also covers luxury items, such as private art, jewellery, and property that isn’t rented out or used. Unrealized capital gains on cryptocurrency assets will be included in the calculation of total net wealth, which will make it harder for investors to submit their taxes and may even increase the amount of taxes they owe.
What Experts Have to Say
The decision has upset many people in the crypto industry and several financial analysts, who argue that the law will hinder innovation and investment strategies related to crypto in . Cyrille Briere, a decentralized finance entrepreneur and consultant for Lagoon Finance, says that the law only applies to crypto assets because the government has exempted stocks.
“France recently voted to tax unproductive assets at a rate of 1% per year when their value is more than €1.3 million.” Yes, you read that right: capital, not profit. He on X Sunday night in response to Larchevêque’s opinionated piece, “That asset class includes cryptos but not stocks.”
Briere said that the measure could make people less likely to invest and generate new ideas. He also questioned why politicians were protecting traditional financial products while coming later than BTC investors. He said, “If you don’t want your cryptos stolen by kidnappers or the government, just ask your old friend Larry Fink to turn them into stocks.”
What to do Next
The French Senate still needs to evaluate and approve the modification, despite the National Assembly having passed it. The outcome may establish a standard for taxing digital assets throughout the entire .
French crypto investors should keep a close eye on any new laws that emerge, as the rules for reporting assets and adhering to the law are likely to change as regulations evolve.
