Weekly SmartPills #48

GABRIEL ATTAL'S NEW TAX PLAN: IMPACT ON CRYPTO?

New Proposal for Taxation on Investment Income

Gabriel Attal, the Prime Minister of France has announced to the Renaissance group in the National Assembly that a new proposal for taxation on investment income will be presented by June. The goal is to reduce the country’s deficit, but it remains unclear whether this tax will also apply to gains from cryptocurrencies.
Attal’s proposal aims to reduce France’s public deficit. The French government has set an ambitious target of lowering the deficit to 3% of GDP by 2027, down from 5.5% recorded in 2023.

Cryptocurrency Taxation: The Current Framework

Currently, France already has a taxation system for cryptocurrencies. Capital gains from the sale of digital assets such as Bitcoin are taxed as industrial and commercial profits (BIC) if trading is conducted regularly.
Occasional gains, generated by private individuals, are taxed according to specific regulations.

Growing Interest in Crypto Among the French

At the end of 2023, a survey conducted by the Autorité des Marchés Financiers (AMF) revealed a growing interest in cryptocurrencies in France. 9% of French adults are actively involved in crypto investments, with a strong presence among younger generations.
New crypto investors in France tend to have a diverse and youthful profile, with an average age of 36 and a significant portion under 35. This trend reflects a generational shift in investment preferences, showing a clear interest in digital financial solutions.

Conclusion: Uncertainty and Adaptation

While Attal proposes a new tax on investment income to reduce France’s deficit, it remains to be clarified whether this will also include cryptocurrencies. In the meantime, the growing interest in crypto in France reflects a generational shift in investment strategies, highlighting the need to adapt to an evolving financial landscape.