French lawmakers have voted to classify large crypto holdings as “unproductive wealth,” potentially imposing a 1% tax on digital assets exceeding €2 million.
In a significant policy shift, France’s National Assembly has approved an amendment redefining how wealth is taxed — with cryptocurrencies now included under “unproductive assets.” The proposal, introduced by centrist MP Jean-Paul Matteï, aims to reshape the country’s taxation framework and could have lasting implications for high-value crypto investors.
The amendment passed narrowly with a 163–150 vote, supported by both socialist and far-right lawmakers, and forms part of the 2026 national budget discussions. It must still pass through the Senate before becoming law.
Crypto Now Labeled as “Unproductive Wealth”
Under the proposed reform, France’s real estate wealth tax will expand to include assets like digital currencies, gold, classic cars, and art — previously exempt from taxation. The threshold for taxation will rise from €1.3 million to €2 million ($2.3 million), and a flat 1% rate will apply to holdings exceeding that amount.
Matteï argued that the existing tax structure was “economically inconsistent,” claiming it overlooked valuable assets that don’t directly contribute to economic productivity. The new measure, he said, would “encourage productive investment” by incentivizing capital to flow into businesses and sectors that drive growth.
Industry Reaction and Concerns
The crypto community has expressed strong opposition. Éric Larchevêque, co-founder of Ledger, warned that the policy could unfairly target savers seeking financial security outside the traditional system.
He further cautioned that labeling crypto as “unproductive” reflects a misunderstanding of its economic role, emphasizing that the measure could force investors to liquidate digital assets simply to meet tax obligations.
“The political message is clear — crypto is equated with an unproductive reserve, not useful to the real economy,” Larchevêque added.
While the amendment has yet to complete the legislative process, analysts believe its implementation on January 1, 2026, is highly probable. If enacted, France would become one of the first European nations to directly tax cryptocurrency wealth, signaling a tightening stance on digital asset ownership and wealth accumulation outside fiat systems.
The move marks a turning point in France’s fiscal policy — positioning digital assets at the heart of a growing debate over wealth, productivity, and financial sovereignty.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.