France has become the first of the few jurisdictions to neutralize the tax effects of exchanges between digital assets that no longer constitute a taxable event. As for now, the French parliament considering a new rule over tax.
The French government appears to be supportive of the development of cryptocurrency, provided that it is regulated and taxed properly.
The French State Council has amended the tax regime of profits generated from cryptocurrency sales, reducing it from up to 45% to a flat 19%.
The French State Council (Conseil d’État) has announced in a press release that profits arising from cryptocurrency sales should be considered as capital gains of “movable property”. Which means that they will benefit from a lower tax rate than is the case at the moment.
Coinbase, Kraken, Omex, Coinmama, Crypto.com and more are the manners of trading crypto. These companies receive any kind of payment but it is advise to check if the desired coin is held by these brokers before transferring any money.
French authorities started monitoring the use of cryptocurrencies in illegal transactions as early as 2011. Cryptocurrency-related companies that are not currently included in the list of persons subject to AML/CFT requirements must still report any suspicious transaction to the public prosecutor, which will then notify Tracfin.