France’s Progressive Bitcoin Tax Approach
French crptocurrency users have had to endure a savage 36.2% taxation on Bitcoins gains. This tax regime is ending as the French Finance Commission has revealed that it will revisit the 2019 budget amendment. A new bill will reportedly seek to slash the tax rate on crypto gains to 30%. This would mean that cryptos-related gains tax rate would be on par with that of other capital gains. If the French parliament approves the new bill, the new law would be effective from 2019. French progressive tax policies on cryptos, first by slashing taxation rates on crypto gains from 45% to the now proposed 30%, is a clear indication that the nation is in the race to be the next cryptos hub not only in Europe but globally.
The nation is enacting regulations to guide operators in the cryptocurrency exchange business, ICOs issuance, and firms offering digital wallets.
Rooting out illegal activities
Further, the Financial Action Task Force (FATF) has a mandate to create policies that will guide operations in the crypto industry. This includes developing public policy to help ward off unethical activities like money laundering. Accordingly, the body will need to come up with new regulations that complement the nation’s anti money laundering policies. FATF will also be responsible for making it hard to fund terrorism activities using cryptos.
Because illegal activities are associated with cryptos, countries like China, India, and South Korea have been reluctant to embrace digital assets. In September 2019, China declared ICOs illegal. And it didn’t end there. The People’s Bank of China (PBoC), the nation’s Central bank, has carried out a series of campaigns targeting crypto-related activities like airdrops. The paranoia extends to alleged ICOs issuing firms that disguise themselves as blockchain innovators seeking funding. The new regulations features an ”ICOs Visa system” where eligible firms seeking to issue ICOs will apply for it.
During the application interested operators will submit their white paper to the French regulator for review. To qualify for the Visa, a firm has to stipulate to the use of the sourced funds. It mentions the token holder’s rights, and how ICO participants may resolve disputes. The rules are basically a guarantee for ICO investors that the ICOs is safe to invest in.
Finally, in its bid to creating a friendly environment for cryptos dealings, the French government, through its Financial market regulator (l’Autorité des marchés financiers), has proposed new set of guidelines for ICOs.
The proposed bill has already been approved by the nation’s Parliament. Further, it was confirmed in a tweet by Bruno Le Maire, French’s Minister for the Economy and Finance.