This week we had the news that the National Assembly in France voted for a flat tax of 31.4% for moving your crypto to a MiCA regulated stablecoin like USDC. This is not selling out of crypto and is purely a swap or safe haven and is not cashing out. The vote passed by 38-37 and still needs to pass the French Senate so this may or may not happen which would if passed be law in January 2027.
We thought things were bad enough yet this puts a whole new spin on things if this type of thinking is still seen as a good idea.
If you lived in France you may be laughing or crying because most altcoins are down 90-99% and very few people are up in their crypto investment. Imagine swapping out into USDC and triggering a 31.4% tax which in my opinion is very harsh. This is ideocracy at it's best and why governments and their understanding of crypto cannot be trusted.
This week my brother and I discussed the EU passport that we are eligible for and it is time to get it done. This is expected to take a month to get all the missing documents we require like death certificates, but we have the all important marriage certificate of our grand parents. Funny enough AI is the one getting the paper work together so I am not the one doing this as I would be using a normal route.
Having as many countries or jurisdictions open to you is going to be advantageous for wherever you decide to have your off ramp. I have the UK, SA and the EU as options, but even then none tick the right boxes and have worked out another route that bypasses giving away a high taxation on my crypto portfolio. South Africa was never an option as having Rands would mean now trying to break laws moving that cash externally into GBP, USD or EU anyway as the Rand is not a currency you want to be holding due to the depreciation which will always continue to happen.
Having a zero tax route for now is reassuring, but as we all know the current situation can also change before this off ramp is even used. Nothing is guaranteed and why one has to be aware of all the changes in taxation laws because doors can open and close very quickly.
In all honesty if there was no route then it would be selling/swapping into a stablecoin when the time is right and remaining in crypto with no monetary value coming out into a bank account. The though of giving away 20-40% or whatever the tax rates will be in the future makes no financial sense. I just wish that we do not have to think like this and there is some type of fairness administered towards crypto and taxes because this is how those governments will maximize their revenue returns which is common sense.