I saw this come through my feed today and thought this is one of the craziest ideas yet. Having to pay tax on crypto before you have even sold is not exactly how I see things as playing fair. This again highlights the lack of understanding when it comes to crypto. This law has not been passed into law yet, but even the thought they can even be discussing this is insanely stupid.
I am actually a fan of FUD these days so this hitting the news is not terrible and if it keeps crypto prices down a little longer I am all for this. Next year is the Bull cycle and it will be epic no matter what and the chance to accumulate more before that happens is a bonus ,so bring on the FUD. This was or has to have been expected at some point as there has been too much positivity up till now.
If you have crypto make sure this is not on the exchanges and use a self custodial wallet unless it is staked in a crypto staking pool in that particular crypto project. Nothing on the exchanges unless you are planning to sell I guess has to be rule number one and the only rule.
I have to admit I am pretty happy Biden and co are out of the picture come January because their obvious tactic was to delay for as long as possible. The stance was they were protecting the crypto investor and when has any government put their people first with regard to caring? The lies and manipulation was tiresome and all I can say is good riddance.
Most Governments across Europe are hanging on as we saw the manipulation at the last elections in France. The change is coming ad they will not have the numbers the next time around to hang on. The same story with Germany as the tide is turning with people having had enough of being treated as 2nd class citizens.
The crazy part is what if you do not want to sell your crypto and the price tanks which it will when the Bear cycle starts again leaving you with a whopping tax bill because you never sold? This is not taxable profits because profits are only realised once you sell.
From my understanding and that is very basic by the way is that there are two types of taxation taking place or will be in place for the French. A wealth tax whilst you are holding crypto d a capital gains tax when you sell. Unfortunately this is a one way street where you do not get reimbursed for losses. Just think you are holding crypto over a 4 year cycle and only sell at the end of the cycle during that period you would end up paying 4 lots of wealth tax (annually) and one capital gains tax. You would be lucky to make a profit and why self custodial wallets is what is going to save your crypto.
This is another reason to stay in the shadows for as long as possible and have multiple plans of what you are going to do. Mine is simple I will pay tax when I am ready and not before then. South Africa will not be a tax beneficiary of my work because I will have 4 different options and not one. If I was French I know what I would be doing and it would involve a flight to Dubai. Dubai is what the Swiss bank accounts use to offer and that is legalised protected banking privacy protected by the country's law.