A big shout-out goes to France for the most impressive bonehead idea of December.

Last week, French Senator Sylvie Vermeillet proposed classifying Bitcoin as “unproductive.” According to French law, that would mean… taxes on unrealized gains! So far, the idea has passed a preliminary vote in the Senate, and is endorsed by France’s Finance Minister, Laurent Saint-Martin.

To clear up confusion, yes, this would mean that even if you don’t sell your Bitcoin, you’d have to pay the same tax as if you’d sold. The tax on Bitcoin’s gains in France is currently at 30%, but it’s unclear if this rate would be the same under this new proposal. The tax would kick in if unrealized gains on Bitcoin exceed €800,000 (about $845,000). Yes, that’s a lot of money, but for early investors in Bitcoin, it wouldn’t have required a huge initial investment to find yourself with that kind of gain.

Consider the implications…

Say you got lucky with a Bitcoin purchase some years ago and had the stomach to hold as the crypto soared and crashed. Here you are today, sitting on a $1M net worth – but it’s almost entirely thanks to your Bitcoin gain. Will you have hundreds of thousands of dollars laying around to pay this tax? Of course not. So, your only choice will be to sell your Bitcoin. What a staggering punishment for your investment foresight and iron stomach.

By the way, if you want to flee France to escape this tax, the politicians are one step ahead of you: the unprecedented crypto tax regulation in France targets wealthy investors planning to exit the country.

As bad as this is, French Bitcoin “Hodlers” should take the hit and get out of France now because we’re likely nowhere near the end of Bitcoin’s run (despite volatility).