Friday, July 11, 2014

France Getting to Regulate Bitcoin, Other Cryptocurrencies

France wants to know who’s using bitcoins—and then tax them.

The country’s finance ministry said Friday that it plans by the end of the year to implement new rules for financial institutions that will require bitcoin distributors and other platforms to collect and verify the identity of their users before opening accounts.

The ministry also said it has – effective Friday — updated its tax rules to make profits from bitcoin sales subject to capital gains taxes, following the examples of the U.S., U.K., and other countries. As part of the new rules, France will also classify bitcoins as assets that add to owners’ wealth, making them subject to the France’s “fortune tax.”

At least some members France’s bitcoin startup scene reacted with cautious optimism to the rules.

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