Bitcoin Updates Today: France Faces Tax Challenges: Cracking Down on Crypto as It Accumulates Bitcoin

France is overhauling its tax system with a two-pronged strategy that targets both the ultra-rich and digital assets. Lawmakers have dismissed a proposed wealth tax aimed at the wealthiest citizens, but have moved forward with a new tax on "unproductive wealth," which includes cryptocurrencies. Recent decisions in the National Assembly reveal increasing political rifts and a notable change in how taxable assets are defined in the country.

Prime Minister Sebastien Lecornu's administration encountered strong resistance from both left and right political groups regarding its 2026 budget plans. A 2% tax on fortunes above 100 million euros, proposed by economist Gabriel Zucman, was decisively voted down as centrists, conservatives, and far-right representatives joined forces in opposition. Olivier Faure, leader of the Socialist Party, accused the government of protecting the super-wealthy, while Lecornu defended his position, cautioning that Zucman's proposal could drive affluent taxpayers out of France and negatively impact the economy, as noted in a

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Instead, the administration has shifted focus to a more specific tax on assets held by holding companies considered "unproductive," which lawmakers approved in a less stringent form. This 2% tax applies to about 4,000 such companies, which critics claim are mainly used to reduce tax obligations. Budget Minister Amelie de Montchalin stressed the importance of maintaining a balance between fair taxation and economic stability, warning against policies that could discourage investment, according to a

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At the same time, France's legislature has taken a significant step by including cryptocurrencies in its wealth tax regime. On October 22, the National Assembly narrowly approved a 1% tax on "unproductive wealth" over 2 million euros, which now covers crypto assets. This measure was supported by an unusual alliance of centrists, socialists, and far-right lawmakers. The amendment, put forward by centrist MP Jean-Paul Matteï, categorizes digital assets as idle capital, similar to luxury goods such as yachts and fine art, with the aim of encouraging investment in more productive areas, as reported by a

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This development has drawn strong criticism from the cryptocurrency sector. Éric Larchevêque, co-founder of Ledger, a major crypto wallet company, condemned the move as an ideological attack on decentralized finance, arguing that it "penalizes those who want to secure their wealth in gold or

." He cautioned that investors might be compelled to sell assets to pay the tax and expressed concern that future legislation could lower the threshold, expanding the tax's scope, as highlighted by .

The amendment still faces additional scrutiny in the Senate, where its details may be revised. If it becomes law, it would replace the existing real estate wealth tax (IFI) with a broader system, marking a major change in France's approach to digital assets. However, the policy's dual nature—taxing private crypto holdings while separately proposing the accumulation of 420,000 BTC as a national reserve—shows France's ambivalent attitude toward the technology, according to a

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The proposed Bitcoin reserve, supported by right-wing politicians, envisions France acquiring 2% of all Bitcoin over seven to eight years through state-backed mining and asset seizures. This stands in stark contrast to the unproductive wealth tax, which treats crypto as a luxury rather than a necessity. Although the reserve bill is unlikely to pass in its current form, it highlights the growing political interest in Bitcoin as a strategic resource, as also discussed by CryptoSlate.

As France weighs these competing strategies, the unproductive wealth tax amendment reflects a wider international movement toward stricter digital asset regulation. Opponents warn that such policies could push crypto activities to countries with more favorable regulations, while supporters argue it is essential for updating tax laws. With the Senate's decision still pending, the ultimate outcome of these proposals—and their effects on France's economic and technological future—remains unresolved, according to a

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