France Wants to Tax Crypto Holders Before They Sell - BeInCrypto

France is reportedly considering a tax framework that would apply to cryptocurrency holdings before investors sell them, according to BeInCrypto. The proposal reflects a broader push among governments to bring digital assets into existing tax systems, where gains are typically taxed only when an asset is sold and the profit is realized.

The distinction matters because most crypto taxation today follows a realization principle: no sale, no taxable event. A tax on unrealized holdings would mark a notable departure, potentially requiring holders to pay based on paper gains that have not been converted into cash. For investors, that raises practical questions about liquidity — where the money to pay such a tax would come from if assets are not sold.

The idea remains a proposal, not enacted law, so its final scope, rates, and timing are still unclear. What to watch: whether the measure advances through France's legislative process, how it defines taxable holdings, and whether other jurisdictions follow. For now, it signals that European policymakers are exploring tougher approaches to taxing digital wealth, a theme with implications well beyond France.