France’s newly proposed taxation on cryptocurrency holdings is drawing sharp criticism from financial experts and digital asset advocates, who argue that the measure is not only economically discriminatory but also threatens to stifle innovation and push talent out of the country. For the first time in its legislative history, France has singled out digital assets such as Bitcoin and Ethereum in its wealth tax law—placing them in the same category as traditionally “unproductive” assets like luxury yachts, gold, and classic cars.
The amendment—formally known as Amendment No. I-3379 to the 2026 Finance Bill—was narrowly approved in France’s National Assembly by a vote of 163 to 150. Drafted by centrist MP Jean-Paul Mattei of the Les Démocrates party, the law redefines certain high-value assets as “unproductive wealth” and subjects them to a 1% annual tax if the holder’s net wealth exceeds €2 million (approximately $2.2 million). This is a notable increase from the previous wealth tax threshold of €1.3 million.
What makes this amendment controversial is its inclusion of cryptocurrencies alongside other assets that are traditionally considered to serve no direct economic function. Critics argue that this categorization is fundamentally flawed. Unlike gold bars or vintage automobiles, digital assets are often actively used in decentralized finance, startup fundraising, and blockchain innovations that contribute to economic growth. Lumping them into the same bracket as passive luxury goods, they say, misrepresents their economic role and utility.
Industry professionals are especially concerned that this tax policy could disincentivize investment in digital assets and drive blockchain entrepreneurs and developers to more crypto-friendly jurisdictions. “This measure is economically unjust and strategically short-sighted,” said one financial analyst, emphasizing that the global race for fintech leadership could see France fall behind if it continues to penalize digital asset ownership.
The critics also warn that the tax could result in a net negative impact on France’s economy. France has made strides in recent years to become a hub for blockchain development, with Paris emerging as a growing center for crypto-related startups. However, this progress could be undone if high-net-worth individuals and businesses feel targeted by what they perceive as punitive regulation.
Supporters of the amendment argue that the goal is not to punish innovation but to reorient capital toward more productive areas of the economy, such as business development, job creation, and infrastructure. Mattei, the lawmaker behind the amendment, said the intent is to shift wealth into assets that directly contribute to national growth and public good.
Still, the question remains: Are digital assets inherently unproductive? Many argue the answer is no. Cryptocurrencies are not just speculative instruments—they are integral to a rapidly evolving financial ecosystem. From decentralized finance (DeFi) platforms to tokenized equity and blockchain-based services, digital assets are at the heart of a digital transformation. Critics of the new tax say ignoring this reality is a fundamental policy mistake.
Furthermore, the implementation of the tax raises logistical challenges. Valuing digital assets, which are highly volatile, can prove difficult, especially for non-custodial holdings (assets stored outside of centralized exchanges). How authorities intend to track and assess these holdings remains unclear, leaving room for ambiguity and potential legal disputes.
Another concern is the potential for capital flight. If wealthy individuals and investors begin moving their digital assets to countries with more favorable tax laws, France could suffer a brain drain, losing both capital and entrepreneurial talent. Countries such as Portugal and Switzerland, which have more lenient crypto tax regimes, may become increasingly attractive.
This policy shift may also impact France’s broader ambitions within the European Union. As the EU moves toward harmonized digital finance regulations, France’s unilateral move could either set a precedent or isolate it from broader efforts to create a balanced crypto regulatory framework across member states.
In addition, there’s a risk that the tax could discourage transparency. If individuals seek to hide their crypto holdings to avoid the wealth tax, it could undermine compliance efforts and reduce the visibility regulators have into the crypto ecosystem—a counterproductive outcome for policymakers.
To navigate this complex issue, experts suggest a more nuanced, tiered approach that distinguishes between different types of digital assets and their uses. For example, long-term holdings used for staking, liquidity provision, or business operations could be taxed differently than purely speculative holdings.
In conclusion, while France’s proposed wealth tax amendment aims to promote productive investment, its current approach to digital assets may have unintended and far-reaching consequences. By labeling cryptocurrencies as “unproductive,” the policy risks alienating a vibrant and growing sector of the economy. A more informed and balanced approach could help France maintain its competitive edge in the digital age while still achieving its fiscal objectives.