Earlier this week French Senator Sylvie Vermeillet proposed classifying Bitcoin and other digital assets as “unproductive,” arguing they should be taxed like luxury items and vacant properties.

The bill in question classifies cryptocurrencies as unproductive assets for the 2025 budget, meaning that taxes will be imposed on unrealized gains if they exceed €800,000.

Paris-based Alice Stork, founder of Web3 public relations agency ICL, told Decrypt that a Bitcoin tax on unrealized gains is “worrying” and “feels pretty out of touch with how volatile crypto markets are.”

What happens when the value of your holdings drops after you’ve already paid taxes on “gains” you never cashed out, she mused. According to her, the measure could push “innovators and businesses away from France.”

So far, the proposal has passed the Senate in a preliminary vote and been endorsed by the country’s Finance Minister, Laurent Saint-Martin.

The Finance Minister claimed that the change to how Bitcoin gains are taxed makes the system more balanced.

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Author: Adrian Zmudzinski