France's Proposed Crypto Tax is Economically Unjust

France's National Assembly has passed a controversial amendment adding cryptocurrency to a new 'unproductive wealth' tax. This measure imposes a flat 1% annual tax on net wealth exceeding $2.2 million, applied for the first time to digital assets. Experts criticize the bill for not distinguishing between passive investors and entrepreneurs, warning it could penalize innovation and push talent out of the country. Notably, the amendment does not exempt tokens obtained through business activities or long-term holds. Industry leaders argue the tax approach oversimplifies the crypto landscape, with impacts on capital mobility and investment incentives. They call for nuanced definitions to avoid punishing ecosystem builders who contribute to technological progress. This proposal, replacing a previous 30% sale-only crypto tax, now goes to the Senate for further deliberation, with final adoption required by December 31, 2025.

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