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French Crypto Holders Facing Stricter Regulations
Only a small fraction of French crypto holders have declared their coins to the state, a report claimed – with the government set to take action. Per the French IT magazine Clubic, the Ministry of Public Action and Accounts and the nation’s tax bodies are preparing to act. They have been spurred into action after just 150,000 French residents “correctly declared their cryptoassets” at the end of the past financial year.
Under-declaration of Crypto Holdings
According to European Central Bank (ECB) estimates, “some 5 million French people hold cryptoassets including Bitcoin (BTC).” The media outlet said tax officials “suspect” many taxpayers of “under-declaring their assets.”
New Legislation in the Works
The ministry is preparing to respond by rolling out new legislation. It is working in conjunction with the nation’s Economy Ministry. The new legislation will contain a “large arsenal of measures” to ensure compliance among crypto holders.
- The legislation will force crypto holders to declare their assets accurately.
- Fines of up to 40% of the total worth of undeclared coins could be imposed.
- Professional traders may face fines of up to 80% for failing to declare their holdings.
The ministry confirmed that these measures would come as a “rude awakening” for French “cryptocurrency enthusiasts.”
Expected Timeline and Impact
If the new proposals face no opposition in parliament, the bill could be enacted before the end of fall 2024. This means that the new rules could be in place before the end of FY2024, according to the ministry.
Enhanced Powers for Tax Bodies
The Ministry of Public Accounts aims to grant the tax body new powers over citizens’ overseas assets and holdings. This move is intended to crack down on French crypto holders who attempt to conceal their tokens in overseas-based wallets and platforms.
Increasing Crypto Adoption in France
In March, a major French media outlet reported that 15% of people aged 18-24 have bought crypto, while 9% of French citizens have purchased crypto at some point in their lives.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
