French lawmakers have backed a proposal that would require holders of self-custodied crypto assets valued at €100,000 ($112,000) or more to report their holdings to tax authorities. The amendment was approved by the National Assembly’s Finance Committee and would introduce disclosure requirements for crypto assets stored outside regulated crypto service providers.
The proposed rule would apply specifically to self-custodied assets, including cryptocurrencies held in personal wallets rather than through crypto-asset service providers. Under the amendment, holders would need to declare their crypto holdings based on their value as of December 31 and could face penalties of up to €10,000 for failing to comply.
The lawmakers behind the proposal said the measure is designed to address potential tax evasion involving digital assets. They cited a parliamentary inquiry into the taxation of wealthy individuals, which found that crypto capital gains reached €3.5 billion in 2021, while only €400 million in crypto holdings were declared to tax authorities during the same year.
The amendment, introduced by Charles de Courson, Jean-Pierre Bataille, and Michel Castellani from the LIOT parliamentary group, represents part of a wider group of crypto-related proposals considered by the Finance Committee.
Other proposed measures include an exit tax on cryptocurrency holdings exceeding €800,000 when taxpayers move abroad and changes to tax deferral rules related to conversions into fiat-backed stablecoins. These proposals indicate continued efforts by French lawmakers to integrate digital assets more closely into existing tax reporting frameworks.
However, the wallet disclosure rule has not yet become law. Although the Finance Committee approved the amendment, the broader revenue section of France’s 2027 budget bill was later rejected, meaning the crypto-related measures must be reintroduced and approved during further parliamentary discussions before they can take effect.
For the crypto market, the proposal highlights the growing regulatory focus on self-custodied assets. While personal wallets have traditionally been viewed as a key feature of digital asset ownership, governments are increasingly exploring reporting frameworks designed to improve tax transparency.
The next key development will be the parliamentary review process and whether the wallet reporting requirement remains part of the final budget legislation. Until then, the measure remains a proposal rather than an active reporting obligation.
