French Crypto Traders Have Sighed with Relief: the Taxes Will not be Applied

According to Bloomberg, the French economy minister Bruno Le Maire announced on September 12 that the government intends to collect income taxes only when converting cryptocurrencies to fiat. Otherwise, cryptocurrency trading does not require tax payments.

‘We believe that the moment the gains are converted into traditional money is the right time to assess tax,’ Le Maire said.

France was the second country in Europe after Portugal to bring some relief to crypto business.

In August Portugal authorities officially allowed tax-free circulation, trading and payments in crypto money on the territory of the country. And this introduction has got positive support of the local crypto community.

Now France is encouraging other countries to start similar policies.

Is Such Approach to Crypto Regulation a Fair Solution for the Industry?

The statement caused a wide resonance in Twitter. Some users agree this way is totally justified for crypto regulation, while others blame the French government for ambiguity. As everyone knows, recently finance minister sharply opposed Libra from launching in the EU. So still many crypto traders have a suspicion it may turn into a mousetrap. And many users are not happy about paying taxes when cashing crypto at some point. Besides, everyone has to be prepared to prove that crypto funds were not a result of money laundering.

As Reuters reported in June French authorities aims to legalize crypto-related companies according to new legislation on coins. New rules started to work already in July. Crypto traders have to declare themselves to the state authorities. After it, they have to submit information on the financial status of their companies. After verification that the capital has been accumulated within the French law, the crypto entrepreneurs will receive a green light in the country.