France Wants to Tax Crypto Holders Before They Sell - BeInCrypto

France has proposed taxing crypto holders before they sell, according to BeInCrypto. The idea targets unrealized gains — the paper profits on assets still held rather than cashed out. Under most tax systems, investors owe tax only when they dispose of an asset and lock in a gain. Taxing holdings beforehand would mark a notable departure from that convention.

The proposal matters because it would change when a tax bill arises, not just how much is owed. A holder could face a liability on assets they have not sold, potentially forcing sales to cover the charge. That raises practical questions about valuation, payment timing, and how losses would be treated.

For markets, the signal is regulatory rather than immediate. France is one of several jurisdictions weighing how crypto fits existing tax frameworks, and its approach could influence debate elsewhere. What to watch: whether the proposal advances into law, how unrealized gains would be measured, and whether other countries follow with similar rules.