France announces crypto-to-crypto tax exemption; will tax gains for fiat conversion

French economy minister Bruno Le Maire stated that crypto-to-crypto trades will be tax-exempted. According to the report shared by Bloomberg,

“France will tax cryptocurrency gains when they’re converted into “traditional” currency, but crypto-to-crypto transactions remain tax exempt.”

Le Maire specifically mentioned that the right time to assess tax is “the moment the gains are converted into traditional money.” The senior official also added that the country’s value-added tax will only be assessed when a cryptocurrency is to purchase a good or service. This approach is speculated to help the country track transactions, a common challenge with crypto-to-crypto trading.

As per the source, France’s decision comes after reports that the Portugal tax authority has determined cryptocurrency trading and payments in Portugal are tax-free.