Crypto Wealth Faces New 1% Levy
The amendment, introduced by centrist lawmaker Jean-Paul Matteï on October 22, adds a new clause to the tax code, dubbed Article 977, that redefines “unproductive wealth.” If ratified by the Senate and included in France’s 2026 national budget, it could replace the country’s existing real estate wealth tax -- the Impôt sur la Fortune Immobilière (IFI) - with a broader system that targets a wider range of assets.
Under the new framework, “non-productive” holdings such as gold, art, luxury vehicles, yachts, and crypto assets would be subject to the levy, while productive real estate rented long-term and meeting environmental standards would be excluded.
The bill also includes an excise tax on tobacco products to offset potential revenue losses from other reforms.
Crypto Industry Slams “Ideological Error”
France’s crypto community reacted sharply, warning that the move could drive investors and innovators out of the country.
Éric Larchevêque, co-founder of Ledger, criticized the amendment as a “punishment for savers” seeking to secure their wealth outside the fiat system.
He warned that crypto holders without liquid assets might be forced to sell their coins just to pay the new tax. Larchevêque also cautioned that while the current threshold is set at €2 million, lawmakers could later lower it, broadening its impact on middle-class investors.
Uneven Treatment Raises Eyebrows
Adding to the backlash, Cyrille Brière, a DeFi consultant at Lagoon Finance, pointed out that the government excluded stocks from the new wealth category - effectively protecting traditional markets while penalizing crypto investors.
He argued that the move discourages innovation and diversification, suggesting lawmakers are shielding traditional financial institutions while targeting decentralized alternatives.
Policy Clash: Tax Crypto or Hold It?
The new tax proposal comes just a week after French lawmakers introduced a pro-Bitcoin bill aimed at accumulating up to 2% of Bitcoin’s total supply in a national reserve. The plan, led by Eric Ciotti of the Union of the Right (UDR), would establish France’s first Bitcoin treasury, inspired by recent initiatives in the United States.
According to Alexander Laizet, Bitcoin Strategy Director at The Blockchain Group, the program would acquire roughly 420,000 BTC over 7–8 years using nuclear and hydroelectric-powered mining, while maintaining a long-term holding strategy.
This contrast - between taxing private crypto wealth and accumulating Bitcoin at the state level - reveals a growing divide within French politics over the role of digital assets in the nation’s financial strategy.
What’s Next
The amendment still needs Senate approval and inclusion in the 2026 budget before becoming law. However, if enacted, France would become the first EU nation to introduce a dedicated wealth tax on digital assets - setting a precedent for other European governments debating how to treat crypto holdings.
Critics warn it could push capital abroad, while supporters argue it aligns with France’s goal of fairer wealth distribution. Either way, the decision cements crypto’s growing role in France’s fiscal and political discourse.
