France has reclassified cryptocurrencies as ‘moveable properties’, which has also resulted in the tax rate being cut from 45 per cent to 19 per cent.
The decision comes from the French Council of State, which has changed the classification – put in place back in 2014 – of crypto capital gains in order to encourage citizens to invest.
Though the falling tax rate looks like amazing to French traders, it should be noted that the added generalised social contribution tax raises this slightly. However, reports CCN, the total still falls below 40 per cent.
Also, profits generated from Bitcoin mining still fall under the original ruling, and the new classification applies only to investment gains.
Back in February senior officials from both France and Germany called for cryptocurrencies to be regulated and put on the agenda for the G20 summit in March.
In a letter, they said: “We believe there may be new opportunities arising from the tokens and the technologies behind them. However, tokens could pose substantial risks for investors and can be vulnerable to financial crime without appropriate measures. In the longer run, potential risks in the field of financial stability may emerge as well.
“Great efforts have been made in recent years to protect retail investors and consumers more generally, and there is no reasons that appropriate frameworks should not be applicable in this sector.”