The French lower house Parliamentary commision on finance has agreed to adopt the 2019 Budget ammendment that seeks to cut down taxes on Bitcoins gains. The proposed bill that is yet to be approved by the parliament will have Bitcoins and other related cryptos sales taxed at 30% down from the current 36.2%.
Cryptos now classified as capital agains
When the bill passes as law, Bitcoin sales will be classified as capital gains of movable assets and will be subject to a 30% taxation like other property in the same category. The proposed taxation bill does not however, include proceeds from cryptocurrency mining. Mining gains will fall in the tax bracket of non-commercial profits as they are gains from a professional activity.
France becoming cryptos-friendly
It is worth noting that France as a nation is continually warming up to cryptocurrency considering that at one point the nation used to subject cryptocurrency gains to a punitive 45% taxation. Well, unlike other nations like China and India that have openly banned cryptos and ICOs, France recently enacted a law that will provide a legal framework for ICOs dealings.
Regulating cryptos industry
According to the new set of guidelines announced by the government’s Finance Ministry, the Authorité des Marchés Financiers (AMF), French Financial watchdog will be the licencing body for firms intending to issue their ICOs within the French boarders.
France like any other nation that has attracted cryptos dealings is concerned about cryptos security and the distinct possibility that the digital assets would be used to fund terrorist activities. All cryptos-related platforms will need to share with the governing bodies all the informations an investor will need to make sound investment decisions.
The licence will only be issued when the licensing body is certain that investors have a guarantee of recouping their investment. France is notably working towards being Europe’s investments destination. The nation recently launched the Action Plan for Business Growth and Transformation (PACTE).
This new strategy launched by the serving president Emannuel Macron is the one responsible for the enactment of AMF as ICOs licensing body together with other plans that look to paint France as a suitable place to do business.