Crypto investors in France could face stricter reporting requirements as lawmakers push for greater tax transparency. A proposal backed by the French National Assembly’s Finance Committee would require individuals to declare self-custodied cryptocurrency holdings worth €100,000 ($112,000) or more.
The measure, introduced through amendment I-CF821, targets digital assets held outside crypto-asset service providers, including cryptocurrencies stored in personal wallets. Under the proposal, holders would need to report qualifying assets based on their value on December 31 each year.
Individuals who fail to comply could face fines of up to €10,000. The proposed rule would add a new provision to France’s general tax code, expanding the reporting obligations associated with digital asset ownership.
Although the committee has backed up the amendment, the proposal has not yet become law. It must pass further parliamentary stages before the reporting requirement can take effect.
Tax Evasion Concerns Drive Stricker Crypto Oversight
The proposed disclosure requirement is intended to address concerns about undeclared cryptocurrency assets and potential tax evasion. Its sponsors, Charles de Courson, Jean-Pierre Bataille and Michel Castellani, are members of France’s Liberties, Independents, Overseas and Territories (LIOT) parliamentary group.
To support the measure, the lawmakers cited a parliamentary inquiry into the taxation of wealthy individuals. The inquiry found that cryptocurrency capital gains reached €3.5 billion in 2021, while only €400 million in crypto holdings were declared to tax authorities during the same year.
These figures have strengthened calls for closer scrutiny of digital assets, particularly those held directly by individuals rather than through regulated service providers.
The wallet disclosure proposal is one of five crypto-related amendments adopted by the Finance Committee. Other measures include introducing an exit tax on cryptocurrency holdings exceeding €800,000 when taxpayers move abroad and ending tax deferrals on conversions into fiat-backed stablecoins.
Together, the proposals reflect broader efforts to strengthen oversight of cryptocurrency taxation and ensure that digital asset ownership is properly reported.
Budget Dispute Leaves Crypto Proposals Facing Further Hurdles
Despite the committee’s support for the crypto amendments, their future remains uncertain. The Finance Committee subsequently rejected the revenue section of the broader 2027 budget bill by 31 votes to three, creating another hurdle for the proposed measures.
Lawmakers are scheduled to begin debating the budget revenue section in the National Assembly, starting with the government’s original draft.
According to French technology publication Clubic, the crypto amendments would need to be submitted again and approved during the parliamentary proceedings before they could become part of the final legislation.
For cryptocurrency holders in France, the proposal highlights the potential for increased reporting obligations, particularly for those holding substantial assets in personal wallets. If approved, the rule could require affected investors to pay closer attention to year-end valuations and tax declarations.
For now, the €100,000 disclosure threshold remains a proposed measure rather than an enforceable requirement. Its final impact will depend on the outcome of France’s ongoing budget discussions and the subsequent legislative process.
