France is considering new crypto tax rules, and honestly, they sound pretty crazy.

French lawmakers have proposed an exit tax that would force people leaving the country to pay tax on their unrealized crypto profits, even if they haven't sold their coins.

The proposal would apply to crypto portfolios worth more than €800,000 and to people who have lived in France for at least six of the previous ten years.

For example, imagine you bought Bitcoin for €200,000 and it is now worth €1 million. Under this proposal, you could face tax on the €800,000 profit on paper simply because you are moving out of France.

And that's not all.

Another proposal would change how stablecoin swaps are taxed. Currently, swapping Bitcoin for a dollar-pegged stablecoin generally doesn't trigger tax in France. From 2027, that could change, with the swap treated as a taxable sale at the proposed 31.4% flat rate.

Both proposals still need to pass further parliamentary votes, so these changes are not final yet.

And this is happening while Germany is also considering changes to its crypto tax rules, potentially removing the tax-free one-year holding period.

Honestly, the direction some EU countries are taking with crypto taxation, and taxation in general, is crazy.

Imagine having to pay tax on profits you haven't even realized yet. What happens if the market crashes afterward?

Your profits exist on paper, but that doesn't mean you have the cash to pay the tax.

Instead of making Europe more attractive for investors and businesses, governments seem increasingly focused on finding new ways to tax them.

At some point, they need to ask themselves whether these policies will actually generate more revenue or simply push investors and their money somewhere else.