French Government Targets Crypto Holders Who Fail to Declare Holdings
A report suggests that only a small percentage of French crypto holders have reported their cryptocurrency holdings to the government, prompting the authorities to take action. The Ministry of Public Action and Accounts, along with the nation’s tax bodies, are preparing to implement new measures. At the end of the previous financial year, only 150,000 French residents correctly declared their cryptoassets, despite estimates from the European Central Bank indicating that around 5 million French people hold cryptocurrencies like Bitcoin (BTC). Tax officials suspect that many taxpayers are under-declaring their assets, leading the ministry to introduce new legislation in collaboration with the Economy Ministry. This legislation will include a range of measures aimed at ensuring compliance with the government’s requirements. Failure to declare crypto holdings on tax returns can result in fines of up to 40% of the total value of the coins, increasing to 80% for professional crypto traders. The proposed legislation is expected to be discussed in the coming weeks and could be implemented before the end of FY2024. The Ministry of Public Accounts also aims to grant the tax body additional powers to monitor citizens’ overseas assets and holdings, enabling them to crack down on French crypto holders who attempt to hide their tokens on overseas platforms.
