France Outlines Significant Tax Cut for Cryptocurrency

Bitcoin was trading near the $9,500 mark on Friday following the news‎.

The French government has announced a tax reform plan Thursday, which would reduce the tax ‎rates on revenues generated by cryptocurrency transactions, and cut the high-band rate from ‎‎45 percent to 19 percent.‎

The tax reform announced by the French Council of State may just be an opening ‎bid of a long path, but it delivers an aggressive cut that cryptocurrency enthusiasts ‎have been clamoring for.‎

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After adding contributions to the social welfare system, the new rate goes up to nearly ‎‎35 percent, which is still a 25 percent reduction of the original fees, according to a report from French outlet Le Monde.‎‎

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The stimulative effects of the tax cuts come as France changed the classification of ‎bitcoin and its ilk, which currently fall into the “moveable property” category, ‎meaning that it is subject the flat tax of 19 percent on capital gains. Before that, cryptocurrency gains ‎were considered “industrial and commercial profits” while occasional transactions ‎constituted as “non-commercial profits.”‎

Bitcoin was trading near the $9,500 mark on Friday following the news, as cryptocurrency ‎investors were optimistic that regulation may become less stringent ahead.‎

Earlier in January, France’s Finance Minister Bruno Le Maire debated cryptocurrency and said Germany and France will jointly push for global regulation during the ‎‎summit of the G20 in Argentina.‎

At the time, Le Maire told reporters that authorities “will ‎have a joint Franco-German ‎analysis of the risks linked to ‎bitcoin, regulation proposals and these will be ‎submitted ‎as a joint proposal to our G20 counterparts at the G20 ‎summit in ‎Argentina in March.”‎

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