France Targets Crypto
New Legislation Looms for Crypto Holders
May 7, 2024 07:55 AM
Reading time: 1 minute, 32 seconds
TL;DR A startling report reveals that a mere fraction of French cryptocurrency holders have declared their assets to the government, prompting swift legislative action. With an estimated 5 million French people holding cryptoassets, the government is gearing up to enforce compliance through a comprehensive legal framework, aiming to bridge the gap in asset declaration.
The French government is poised to take decisive action against the under-declaration of cryptocurrency assets by its citizens. According to a report by Clubic, a mere 150,000 of the estimated 5 million French crypto holders have accurately reported their holdings to the state. This discrepancy has caught the attention of the Ministry of Public Action and Accounts, which along with the nation's tax authority, is preparing to introduce stringent measures to combat this issue.
Legislative Response
New legislation, aimed at enforcing crypto asset declaration, is in the works. This initiative is a collaborative effort between the Ministry of Public Action and Accounts and the Economy Ministry. The proposed legal framework is expected to encompass a wide range of measures designed to ensure compliance among cryptocurrency enthusiasts. The looming legislation, part of a broader anti-fraud effort, is anticipated to serve as a wake-up call for many in the crypto community.
Penalties for Non-Compliance Failure to declare cryptocurrency holdings can result in hefty fines, amounting to up to 40% of the asset's value. For professional traders, this penalty could escalate to 80%. These measures underscore the government's resolve to ensure full transparency and compliance in the rapidly evolving digital asset space.
International Oversight
Beyond domestic measures, the Ministry of Public Accounts is seeking to extend its reach to French citizens' overseas assets. This move aims to prevent the concealment of cryptocurrency holdings in foreign wallets and exchanges, ensuring a comprehensive approach to asset declaration.
"According to European Central Bank estimates, some 5 million French people hold cryptoassets including Bitcoin (BTC)."
Looking Ahead The proposed legislation is set to be discussed in the coming weeks, with the potential to be enacted before the end of fall 2024. This timeline indicates that the new rules could be in effect by the end of the fiscal year 2024, marking a significant shift in France's approach to cryptocurrency regulation.
