According to the Finance Minister of France, traders will not have to pay taxes for gains they made on crypto-to-crypto trading unless they convert them into fiat currencies.
The decision to not tax France-based crypto traders is apparently part of the French authorities’ plan of tracking virtual currency transactions.
Regarding Facebook’s impending Libra cryptocurrency, the Finance Minister has stated that the country will stop its efforts of operating in Europe. On the other hand, Switzerland regulators are asking for international cooperation and to assemble a governing structure that will handle the new crypto.
Bruno Le Maire, the Minister of Finance in France announced that there will be no taxes applied to the profits made from crypto trading. Users will only have to pay taxes on crypto if they convert them in fiat currency.
Le Maire was quoted to have said:
“We believe that the moment the gains are converted into traditional money is the right time to assess tax.”
It has been reported that France has already started introducing the new cryptocurrency taxation structure and may take its proposal to the European Union (EU). The new framework is believed to have been designed to help the monitoring and tracking of crypto transactions.
French authorities have recently applied significant taxes on digital technology, particularly those are outsourced from companies based in the United States. The country allegedly intends on applying a 5% tax on industry giants such as Facebook and Google.
France is still continuing with its efforts to persuade EU legislators into creating a well- defined set of guidelines from cryptocurrencies and their use in the region.
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