France calls crypto holdings “unproductive wealth” – what this means for you as a trader

France’s lower house just approved (first reading, as part of the 2026 budget) a change that would treat some assets as “unproductive wealth”… and crypto is explicitly in the list.

Heres the deal. If your net taxable wealth exceeds €1.3 million, the proposal would apply a flat 1% annual levy on “unproductive wealth.” A main home could get up to a €1m allowance under the version MPs advanced. This is a wealth tax on asset value… so you can owe even if you havent sold anything yet. It still has to clear the rest of the budget process (including the Senate) before it’s law.

Before this, France only taxed crypto when you actually sold it for profit. This would add a separate annual wealth layer (like yachts, gold, art) on top of the existing capital-gains rules.

What does this mean for traders? French residents must declare foreign digital-asset accounts (Form 3916/3916-bis) and, if this passes, they’d also have to value covered assets each year for the wealth levy. Non-compliance already carries fines, so the “full transparency” point stands.

Supporters say it nudges money toward “productive” investment and raises revenue. Critics worry it hits smaller millionaires, may push investors out, and complicates valuations for volatile assets like crypto.

If you’re holding significant crypto in France, talk to a tax professional now. Tot up your worldwide assets carefully, check the residence and account-declaration rules, and be ready in case the final budget keeps this measure.

This could be a preview of what’s coming elsewhere. Governments are catching up fast.