Portugal recently attracted attention as one of Europe’s preferred destinations for trading Bitcoins (BTC) and altcoins after announcing that crypto trading would not be subject to income tax. The country also indicated it would not apply VAT to crypto transactions.
According to Bloomberg, France has also clarified its stance on crypto trading. The economic daily reports that Finance Minister Bruno Le Maire said France will not tax crypto-to-crypto trades. This tax position applies only to trades that remain within the crypto ecosystem and does not concern conversions to fiat currency.
This crypto trading decision could interest many cryptocurrency investors
As a result, investors in France can participate more fully in the monetary shift driven by cryptocurrencies and blockchain through crypto-to-crypto trading.
“We believe the right time to assess taxation is when gains are converted into traditional currency,” the French finance minister said.
Therefore, as long as investors do not sell their cryptocurrencies for fiat currencies such as EUR, USD, or GBP, they will not be liable for tax on those trades. This measure could encourage further development and adoption of cryptocurrencies in France.
Beyond crypto trading, Bruno Le Maire commented on Facebook’s Libra
Speaking at an OECD conference, the French finance minister warned that Facebook’s Libra would threaten state sovereignty.
“A private company cannot — and must not — create a sovereign currency that could compete with state currencies. Central banks must remain the lenders of first and last resort,” Bruno Le Maire told the National Assembly earlier this year.
Yesterday he reiterated his refusal to allow Libra to develop “on European soil.”
“Libra raises risks for consumers and businesses, and also poses a systemic risk given its potential reach of two billion users,” he added.
On the systemic risk, Le Maire emphasized that any failure in the operation of such a currency or in managing its reserves could trigger significant financial disruption.
Against Libra but supportive of blockchain technology
“I believe in blockchain,” he said. “It is a forward-looking technology — a major 21st-century innovation that must be taken seriously. It needs to be properly organized, and OECD member states should take the lead in mastering this technology,” the finance minister explained.
Want to take advantage of crypto trading?
To invest in cryptocurrencies, open an account on an exchange such as Binance or Coinbase. To trade price movements of crypto-related currency pairs, you can open a CFD trading account with a broker like eToro or Plus500.