France won’t be taxing crypto-to-crypto transactions, but will impose taxes on capital gains made from converting digital currencies to fiat money, according to French finance minister Bruno Le Maire.
Le Maire states,
“We believe that the moment the gains are converted into traditional money is the right time to assess tax.”
According to Bloomberg, the nation’s approach to applying taxes to crypto transactions should help with monitoring digital currency transfers, which has been challenging in cases where one crypto is exchanged for another.
Value-added tax will only be applied when a crypto asset is used to pay for a good or service, Le Maire clarifies.
France’s announcement comes shortly after Portugal’s government said that it will not impose taxes on crypto trading and payments.
While France may allow certain crypto transactions, Le Maire reveals that the nation’s regulators are blocking Facebook’s controversial Libra cryptocurrency project.
The minister says that Libra puts the “monetary sovereignty” of states at risk.
“Concerns around Libra are serious. So I want to say this with a lot of clarity: I want to be absolutely clear: in these conditions, we cannot authorize the development of Libra on European soil.”