France Wants to Tax Crypto Holders Before They Sell - BeInCrypto

France is reportedly considering a tax on crypto holders before they sell, according to BeInCrypto. The proposal targets unrealized gains — the paper profits on assets a holder still owns — rather than taxing only when a position is sold. That distinction matters, because most tax systems tax gains at the point of disposal, when the holder has cash in hand to cover the bill.

If enacted, such a framework could reshape how crypto is treated in France. Taxing paper gains means a holder could owe tax on value that has not been converted into cash, creating a potential mismatch between an obligation and the liquidity available to meet it. It could also influence where crypto businesses and investors choose to base themselves, at a time when jurisdictions are competing for digital-asset activity.

The detail to watch is whether this remains a proposal or advances into law, and how unrealized gains would be valued and timed. For now, it signals a broader regulatory direction rather than a final rule.