France is changing how it taxes wealth by including large cryptocurrency holdings under a new rule targeting what it calls “unproductive wealth"

France has passed a law taxing large cryptocurrency holdings, labeling them “unproductive wealth.” The tax applies to individuals with more than €2 million in total assets—including crypto, yachts, luxury cars, and unused property—at a 1% rate. Previously, France only taxed real estate wealth.

Crypto now counts toward taxable assets even if it hasn’t been sold, meaning unrealized gains may be included. Investors must report all holdings, including those on foreign exchanges.

Supporters say the measure closes loopholes and pushes wealthy citizens to put their assets into productive economic activity. Critics argue it could discourage innovation, prompt investors to move funds outside France, and slow growth in the digital economy.