France will tax cryptocurrency gains when they’re converted into “traditional” currency, but crypto-to-crypto transactions remain tax exempt, French economy minister Bruno Le Maire said Sept. 12.

The country’s approach would help with tracking of transactions, a common challenge with crypto-to-crypto trading. “We believe that the moment the gains are converted into traditional money is the right time to assess tax,” Le Maire said.

By the same logic, value-added tax will only be assessed when a cryptocurrency asset is used to acquire an asset or a service, he said.

France is already applying the approach and has proposed it to the...