Taxation of active crypto   

 

 

 

This article speack about taxes and crypto in france, we can imagine than the situation could be the same in others states.

 

As every time society evolves, the state swims in a legal limbo, it was the case twenty years ago when the internet was democratized. Already there was a problem with peer-to-peer downloads and we had the Hadopi law. Today this article talks about the cryptocurrency still in the adoption phase, however the state and public finances do not intend to miss this juicy market representing a total capitalization of more than 264 billion dollars in early June 2019.

The state in pain (see article yellow vest & bitcoin) desperately seeking money, innovating in the invention of new taxes until creating new ones on the pillows, mattresses (yes we are imposed on the sleep), sugar (tax soft drinks) and even salt (dixit for health reasons) it was to be expected, crypto enthousiast we will be rewarded for our risk taking and inspirations on the crypto markets by taxes worthy of the name. Bruno le Maire minister of economy and finances, goes so far as to describe France as "crypto friendly" after all the good accounts make good friends, is not it?

REVENUE DECLARATION FOR CRYPTO ASSETS

According to the general tax code (source legifrance)

First, any digital asset account will be required to be reported on Form 3916 of the reporting form. Even if it was closed during the reporting year.

Are concerned all accounts where one can hold crypto and FIAT (euros, dollars, and other international currencies) as coinbase, bitpanda, bitstamp, kraken, blockchain.com binance.je ect

However to date, no obligation to mention the balance. You will notice that to date the declaration form is not at all adapted to the account declaration of crypto assets.

The penalties foreseen for failing to declare his accounts are 1500 to 10 000 euros fine per undeclared account, the second amount being reserved for cases where if the domiciliation of the account would be established in a country which has not signed the agreement of administrative assistance.

Currently capital gains and disposals above 305 euros are taxed from 30 to 60% depending on the case. Capital losses are not taken into account naturally.

ETAU EXTENDS ON INVESTOR CRYPTO

The national assembly has ordered a commission led by a former minister several times sued for illegal funding in order to make proposals for laws about crypto. They are 27 in number and aim to "better frame this new phenomenon of society."

We can easily imagine exchanges as coinbase, just as banks do today, make themselves available to states to give access to the books of accounts of its citizens. The identity verification is claimed on any platform it will be difficult to imagine to hide what account.

The question also arises concerning people in difficulty, in debt, will they be able to see you frozen their assets on the exchanges at the request of the state?

At this point, bitcoin and other cryptocurrency would then become centralized, controlled by the states and completely outside of its original project.

 

We can only advise our readers to equip themselves with a ledger key for cold storage of their crypto assets, this means is currently exempt from all taxes and declarations in addition to being untraceable.

In a future article I will discuss the solution to "legally" escape the various state taxes to save crypto currency and bitcoin while enjoying our capital gains without paying a single cent of taxes.

Ledger Nano X - The secure hardware wallet

 

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