Bruno Le Maire, France’s Economy Minister, has revealed the country won’t tax crypto-to-crypto transactions, but will tax cryptocurrency gains when they’re cashed out into fiat.

According to Bloomberg, the approach is set to help France track cryptocurrency transactions. Le Maire noted:

We believe that the moment the gains are converted into traditional money is the right time to assess tax.

The minister added that value-added tax (VAT) will also only be assessed once cryptocurrencies are used to acquire a product or a service, and that France is already applying this approach.

Le Maire has earlier today, September 12, noted France “cannot authorize” the development of Facebook’s upcoming cryptocurrency Libra in Europe, as it’s seen as a threat to European governments’ “monetary sovereignty.”

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