France might not be ready to recognize Bitcoin as a form of currency, but the country is apparently ready to tax the revenue generated by cryptocurrency transactions. The information was recently revealed by the French Ministry of Economy and Finance.
However, according to the country’s law, the rules are not black and white. The tax will only apply to individuals that are able to turn a constant flow of Bitcoin trading into regular earnings. “For the time being, there is no declarative obligation in what concerns Bitcoin”, a ministry spokesperson told the newspaper Le Monde.
All taxpayers are required to declare all their revenues, including those originating from abroad. This said, there is a certain tolerance [from the state authorities] regarding minor and irregular revenues, for instance from occasional sales.
The news is announced months after the Bank of France issued a warning about the risks related to the adoption of cryptocurrency. “Even if Bitcoin is not currently a credible investment vehicle and therefore do not pose a significant risk to financial stability, they represent a financial risk for those who hold them”, the central bank explained in a statement, quoted by PFHub.
For now, the newspaper Le Monde says that the French Bitcoiners will have to identify themselves as professional traders in case they are involved in regular transactions. The banks will apparently “invite” the clients that own Bitcoins to explain the origins of their digital fortune.
“Once there is enrichment, you must inform the IRS”, says Daniel Gutmann, a lawyer at CMS Bureau Francis Lefebvre.
Images from Wikimedia
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