French legislators have voted to introduce a reporting requirement for individuals who keep crypto assets in personal wallets worth at least €100,000, with non-compliance punishable by fines.
Reporting obligations and penalties
The amendment, identified as I-CF821, mandates that owners of self-custodied crypto must disclose the value of their holdings as of December 31 each year when the amount reaches or exceeds €100,000 (approximately $112,000). The disclosure would be added to France’s general tax code. Failure to file the information could attract a fine of up to €10,000.
Rationale behind the measure
Proponents argue the rule targets tax evasion. A parliamentary inquiry into wealthy taxpayers revealed that crypto-related capital gains amounted to €3.5 billion in 2021, yet only €400 million of crypto holdings were reported to tax authorities that year. The amendment was championed by three members of the Liberties, Independents, Overseas and Territories (LIOT) group—Charles de Courson, Jean-Pierre Bataille and Michel Castellani—who said the provision would close a significant loophole.
Legislative trajectory
The finance committee of the National Assembly adopted the amendment on a Friday, alongside four other crypto-related proposals. Those additional measures include an exit tax on crypto assets exceeding €800,000 for individuals relocating abroad and the removal of tax deferrals on conversions into fiat-backed stablecoins. Although the committee approved the amendments, it rejected the revenue section of the broader 2027 budget bill by a 31-to-3 vote. Lawmakers are set to begin debating the budget’s revenue chapter on the following Tuesday, using the government’s original draft as a starting point. According to a French tech outlet, the wallet-disclosure amendment must be re-submitted and receive final approval during the full parliamentary session before it can be enacted.
Why it matters
The proposal would be one of the first European initiatives targeting privately held crypto assets, shifting compliance responsibilities from exchanges to individual users. If enacted, French crypto holders will need to adjust their tax reporting practices, and the rule could influence other jurisdictions seeking to tighten oversight of self-custodied digital assets. The outcome also underscores the growing scrutiny of crypto holdings by national tax authorities amid rising global interest in regulating the sector.
