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Rejection of Bills Relating to Taxation of Crypto in France Throws Industry in a Limbo

The rejection of crypto bills by the French lower house of parliament regarding crypto taxation has thrown the cryptocurrency industry into a limbo. The amendments were part of the 2019 French government financial bills that were to come into effect come January 2019. But things took a different turn when four bills were thrown out.

Rejected Bills

According to local news outlet Bitcoin.fr, the lawmakers objected the proposal to increase the annual amount of exempted transactions from €305 which is $350 to €3,000 or €5,000. The figures loosely translate to $3,430 and $5,714 respectively. On the other hand, $305 is the annual government figure exempted from tax but it’s too low. Further on the lawmakers threw out another proposal that would have clarified the discrepancy between occasional and regular cryptocurrency transactions. If the bill would have been accepted taxes on occasional transactions were be fairer.

Similarly, lawmakers also rejected a bill proposing concerned agencies to use the same taxation framework for the securities sector when it comes to taxation in the cryptocurrency sector.  Besides dismissing the current amendments, the French National Assembly is silent on a proposal to reduce the current tax rate which stands at 36.2% to a flat rate of 30%.

Lawmakers Decision Contradicts Macron Views

The current decision by the lawmakers is contrary to views of Emmanuel Macron President of France who would like to see France be the startup nation. Besides the lawmaker’s current decision going against the sentiments of President Macron, they also contradict the views of Bruno le Maire France Minister for Economy and Finance. He believes France is ready to embrace the revolution brought about by blockchain. His views cement the opinions of Macron. To actualize le Maire views French political deputies pledged €500 million to kick-start the deployment of blockchain on a state level in the next three years. Besides the French parliament, the central bank also rejected a proposal to allow tobacco kiosks sell Bitcoin come 2019.

For Alexandre Stachtchenko head of a French blockchain association Chaintech, the move by the national assembly to reject bills has thrown the industry into an uncertain situation. According to Stachtchenko most of the traders and investors will not file their incomes coming from the crypto sector.

While other governments are embracing the use of digital currencies and putting in place legal frameworks, French lawmakers are rejecting bills making it harder for the industry to grow.