France, which has the potential to become Europe’s next crypto and blockchain hub, is now making moves to make the country more attractive to crypto investors. Lawmakers are now moving to bring down the current high capital gains tax rate for Bitcoin sales to a level on par with the tax rate for other non-real estate assets.
Finance Commission Wants to Lower Bitcoin Tax
On November 7, 2018, the Lower House of Parliament’s Finance Commission has already backed plans that would reduce the tax rate imposed on Bitcoin sales, according to a Reuters report. If the move succeeds, capital gains from Bitcoin sales will have the same tax as the capital gains of other non-real estate assets.
Currently, non-real estate assets are slapped with a 30 percent capital gains tax. Bitcoin sales, on the other hand, are subjected to a much higher rate of 36.2 percent. France Finance Commission wants the reduce the Bitcoin sales tax rate by 6.2 percent to bring it in line with other non-real estate assets.
Europe’s Next Crypto and Blockchain Hub
The French government has been taking steps to catch up to its rivals and perhaps even become a crypto and blockchain hub in Europe. In September, the Parliament approved the Initial Coin Offering (ICO) framework proposed by Authorité des Marchés Financiers (AMF), the country’s financial market regulator, which makes it easier for companies that want to float ICOs in the country to proceed with their plans.
In a previous interview, blockchain entrepreneur Pierre Noizat also highlighted the possible ways the government could sweeten the deal for crypto and blockchain business, which also included the lowering of taxes. This is exactly what the Finance Commission is doing right now. This could mean that France’s dream of becoming a crypto hub is getting closer to reality.
“I, of course, appreciate the government’s efforts, yet I wish they would encourage the industry with greater incentives. Lowering taxation, recognizing the liberating nature of a payment in euros via a Bitcoin transaction, helping crypto-entrepreneurs launching ICOs to have easier access to banking services (right now most French banks do not want to support crypto-related companies) would be an encouraging step to promoting the possibilities offered by blockchain in France.”