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The French government will reduce the value-added tax on Bitcoin

Story Highlights 

  • VAT reduce to 30% from 36%

  • European crypto-paradise

Provisions for crypto projects

France is undoubtedly one of the European countries, which is at the forefront of the introduction, integration and legalization of cryptocurrency, thanks to the friendly attitude of the government towards the business under the new president, Emmanuel Macron. Surprisingly, his plan also includes provisions for cryptocurrency projects. He recognizes digital currency and technology that supports it.

VAT reduction

It is expected that cryptocurrency traders in France will start using a lower tax burden from the beginning of next year. Legislators of the country plan to adopt a draft amendment that will stimulate tax rate reductions.

According to Reuters lawmakers in the lower house of parliament in Paris had adopted an amendment to the next budget bill, which would reduce the capital gains tax on cryptocurrency sales to 30% from 36%. The same rate applies to many other financial products in the country. However, it is too early to start celebrating, because members of parliament, both in the lower and in the upper chamber, have to approve it. Deputies will discuss the proposed amendments in the coming days. If accepted, the proposed rate will take effect on January 1, 2019. This is the last of a series of political decisions taken by the administration of Emmanuel Macron to create a regulatory and legal framework for blockchain startups.

Earlier this year, President Macron promised to improve the regulatory environment to promote business growth in the country. Therefore, he presented a bill on growth and business transformation. The bill makes it easier for companies to work in France. It is also the most progressive legal framework dedicated to the sale of tokens. The Covenant was adopted by the Parliament in the first reading on October 9. The Senate is expected to consider it early next year. France is one of the largest economies in Europe, which is turning into a paradise for cryptocurrency.

Mur Kvantaliani

MUR KVANTALIANI Mur Kvantaliani is an International researcher, scholar and journalist. His interests focus on geopolitics, economics, renewable energy and new technologies. Mur holds Masters degrees in English and German literature. He has lived and worked in the United States and Germany where he developed his career as a journalist and creative writer.

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