The French Conseil d’Etat just changed its cryptocurrency tax laws, designating them as capital gains, a change that will lower the taxes on cryptocurrency profits from 45% to 19%.
The change in the tax code comes after the French government decided it wants to become the capital of ICOs by openly supporting new blockchain tech, once safeguards are set in place by the AMF (Autorité des marchés financiers).
According to Les Echos online, in mid-March of this year the French government set out to quickly bring legislation that would change their monetary and financial code through the AMF and set up a flexible and adaptive framework for ICOs. While offering an incentive that works in favor for ICOs, investors can still be protected in such investments that have proven to be risky.
France’s Economy Minister said in regards to the plan,
"Our goal is to provide legal certainty for those who seek it, without hindering those who want to follow their own path. We have a rather liberal approach. We work for a flexible, non-dissuasive framework. At the same time, we are not naive either, we know that these products can be risky.”
France’s AMF is an independent body responsible for safeguarding investments in monetary contracts, savings, investments and keeping financial markets flowing smoothly.