Overview
- France’s National Assembly approved the wealth-tax amendment in a first reading on Oct. 31, sending the text to the Senate for potential tweaks to definitions and carve‑outs.
- The measure applies a 1% annual levy to net wealth exceeding €2 million and explicitly includes digital assets labeled as “unproductive wealth,” with valuations assessed even if holdings are not sold.
- Residents would face expanded reporting obligations covering all crypto wallets and accounts held in France or abroad under the proposed framework.
- Start‑ups and exchanges warn that annual mark‑to‑market taxation could strain liquidity, complicate valuations, and push activity toward jurisdictions with lighter rules.
- A separate UDR bill proposes building a national reserve of about 420,000 BTC over seven to eight years using mechanisms such as state mining, seized coins, and options to pay certain taxes in crypto, with the text awaiting committee debate.