France Proposes Tax on Unrealized Crypto Gains

France is making headlines with a controversial tax proposal targeting unrealized crypto gains as part of its 2025 budget.

If passed, investors could be taxed on the increased value of their holdings, even without selling them. The measure, approved by the Senate, now awaits a vote in the National Assembly.

Supporters argue the tax ensures wealthier investors contribute fairly, while critics warn it could penalize holders and discourage innovation. Unlike existing capital gains taxes on sales, this proposal adds a layer of complexity by taxing unsold assets, a rare move globally.

This development comes as Europe ramps up efforts to regulate crypto, balancing innovation with oversight. While France’s bold step may set a precedent, it also raises concerns about driving investment out of the region. The proposal highlights the growing tension between crypto’s decentralized ethos and governments’ push for tighter control.

If implemented, this tax could mark a significant shift in how digital assets are treated, both in France and potentially across Europe. It would put France at the forefront of crypto regulation but may also spark backlash from investors and businesses worried about the long-term impact on the region’s competitiveness in the fast-evolving digital economy.