France’s Proposed Crypto Tax is ‘Economically Unjust’: Experts

In brief

France’s National Assembly passed Amendment No. I-3379 by a narrow 163-150 vote, adding crypto to a new “unproductive wealth” tax.
The measure imposes a flat 1% annual tax on net wealth exceeding $2.2 million.
Experts warn the bill lacks distinctions between passive investors and ecosystem builders, potentially penalizing founders whose tokens represent long-term project alignment.

France’s National Assembly has adopted a controversial wealth tax amendment that, for the first time, explicitly targets cryptocurrency holdings, triggering criticism from industry experts who warn the measure could penalize innovation and drive talent abroad.

Amendment No. I-3379 to France’s 2026 Finance Bill, passed by a narrow 163-150 vote last Friday, adds digital assets under Article L.54-10-1 of France’s Monetary and Financial Code to a new “unproductive wealth” tax base alongside gold, yachts, and classic cars.

The measure, introduced by centrist MP Jean-Paul Mattei of the Les Démocrates group, imposes a flat 1% annual tax on net wealth exceeding $2.2 million (€2 million), up from the previous $1.49 million (€1.3 million) threshold.

While the bill aims to encourage productive investment by exempting certain long-term rental properties, crypto receives no such carve-out.

The amendment does not distinguish categories of crypto holders and fails to exempt tokens obtained through business activity, team vesting, or network incentive programs.

Industry experts say the lack of nuanced definitions has complicated the tax treatment for crypto founders and builders.

Joe David, CEO and Founder at Nephos, a professional services firm for the digital asset industry, told Decrypt the bill “risks oversimplifying” the crypto landscape by failing to distinguish between passive investors and ecosystem builders whose tokens represent “years of contribution, innovation, and risk taking.”

He warned the measure could “inadvertently penalize productive capital” driving technological progress in France’s digital economy and doesn’t align with “global standards” on crypto taxation.

The latest proposal would upend its 30% sale-only crypto tax, replacing it with an annual wealth levy on holdings—taxing coins “whether or not they’re sold.”

Burçak Ünsal, Managing Partner at ÜNSAL Attorneys at Law, told Decrypt the amendment fails to carve out token issuers and founders who hold assets as part of their operational role.

Taxing early token-holders could be “economically unjust,” he noted, when their role is ecosystem-building, creating an “unintended disincentive” for long-term alignment.

Ünsal warned that without clear definitions distinguishing professional from occasional traders, there remains “tax-structuring risk” for token-based business models.

The bill lacks clear definitions distinguishing occasional from professional traders, Ünsal said, noting that the distinction “would be determined on a case-by-case basis” considering “volume, frequency, and proportion of crypto income.” He warned that until “implementing decrees or guidance” clarify the rules, a “tax-structuring risk” remains for token-based businesses.

Austin Yuanlun Yin, US-licensed CPA and President of the Global Council on Crypto Taxation, told Decrypt the reform “risks punishing innovation” and that taxing crypto heavily “will accelerate capital flight” since investors can move digital assets across borders in minutes.

“By lumping digital assets like Bitcoin with yachts and art under a ‘tax on unproductive wealth,’ France is sending a message that capital held in crypto is idle rather than dynamic. That is inaccurate and shortsighted,” Yin said.

Instead of taxing crypto holdings as ‘unproductive,’ policymakers should “recognize their role in funding startups, decentralized infrastructure, and digital innovation,” he added.

The bill now heads to the Senate before a second reading in the National Assembly. Lawmakers have 70 days to complete deliberations, with final adoption required by December 31, 2025.