French Lawmakers Approve Reporting Rule for Crypto Wallets Holding Over $112K
French lawmakers have backed an amendment requiring holders of self-custodied crypto assets valued at 100,000 euros ($112,000) or more to report their holdings, facing fines up to 10,000 euros for non-compliance. The rule targets crypto assets not held through licensed service providers, aiming to combat tax evasion by increasing transparency around private crypto wallets.
Details of the Proposal and Its Context
Amendment I-CF821 was adopted by the Finance Committee of the French National Assembly and proposes an addition to the general tax code. Holders of cryptocurrency assets stored in personal wallets must disclose holdings valued at or above 100,000 euros as of December 31 annually.
The measure aims to fight tax evasion. Sponsors highlighted findings from a parliamentary inquiry showing that crypto capital gains reached 3.5 billion euros in 2021, while only 400 million euros in crypto holdings were declared to tax authorities that year.
Sponsors and Related Crypto Proposals
The amendment was introduced by Charles de Courson, Jean-Pierre Bataille, and Michel Castellani, members of the Liberties, Independents, Overseas and Territories (LIOT) parliamentary group.
Alongside the wallet disclosure rule, the Finance Committee also adopted four other crypto-related amendments, including implementing an exit tax on cryptocurrency holdings above 800,000 euros when taxpayers relocate abroad and ending tax deferrals on converting cryptocurrencies into fiat-backed stablecoins.
Legislative Challenges Ahead
Although the Finance Committee approved the amendments, the revenue section of the broader 2027 budget bill was later rejected by the National Assembly with 31 votes against 3.
Debate on the revenue section is scheduled to begin the following Tuesday, based on the government's original draft. The crypto-related amendments will have to be reintroduced and approved again through parliamentary proceedings before becoming law, according to the French tech outlet Clubic.
Why it matters
The new reporting requirement for significant crypto wallets in France signals the authorities’ drive to increase transparency over crypto holdings and tighten tax compliance in the burgeoning digital asset sector. The obligation to disclose self-custodied cryptocurrency above a certain value threshold aims to clamp down on tax evasion. The measure’s relevance is also heightened by its links to broader tax policy themes, such as the proposed exit tax on those relocating abroad with substantial crypto assets. Despite legislative hurdles, the initiative reflects a broader trend toward more stringent cryptocurrency regulation in France.
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