France Poised to Implement Bitcoin Transparency Regulations, Updates Tax Rules

France is poised to implement bitcoin transparency regulations in the next five months, according to a report from the Wall Street Journal.

The finance ministry in the country has stated that they plan to have new regulations in place by year’s end to have financial institutions operating in the digital currency space to both collect and verify the identity of users before allowing them to open accounts.

The measures will ensure that users aren’t committing crimes like money laundering or tax evasion — similar to how traditional financial institutions (like banks) operate.

No specific dates were announced, but it certainly appears to be a work-in-progress.

Updated tax rules

The finance ministry also added that they have updated their tax regulations to encompass bitcoin at some level. Profits from bitcoin sales will be subject to a capital gains tax, which can be significant.

The move follows in the footsteps of regulations already implements in the United States and United Kingdom, however, so it shouldn’t come as a surprise.

The Wall Street Journal also reports that France will be classifying bitcoin as an asset that add to their owners’ wealth, therefore making them subject to the country’s “fortune tax.”

Just yesterday, Argentina’s Financial Intelligence Unit announced that financial institutions are now required to “report operations performed with virtual coins,” in accordance with a newly-passed resolution, enacted on the 4th of July.

As the expansion of bitcoin and other digital currencies continue,many expect to see much more of this type of legislative involvement. In New York, for example, the state’s Department of Financial Services will shortly be released regulatory rules for both consumers and businesses.

[textmarker color=”C24000″]Source[/textmarker] Digits/WSJ