French lawmakers have advanced a proposal mandating that holders of self-custodied crypto assets report holdings valued at 100,000 euros ($112,000) or more. The amendment, numbered I-CF821 and introduced by Charles de Courson, Jean-Pierre Bataille, and Michel Castellani of the LIOT parliamentary group, was adopted by the National Assembly’s Finance Committee on Friday. It targets assets not held by crypto-asset service providers, including those in personal wallets, requiring disclosure based on their value as of December 31. Non-compliance could result in fines up to 10,000 euros.
The sponsors cited a parliamentary inquiry into wealthy individuals' taxation, which revealed that while crypto capital gains reached 3.5 billion euros in 2021, only 400 million euros in holdings were declared to tax authorities. This measure is one of five crypto-related amendments adopted by the committee last week, alongside proposals for an exit tax on holdings exceeding 800,000 euros and ending tax deferrals on stablecoin conversions. However, the committee subsequently rejected the revenue section of the broader 2027 budget bill by 31 votes to 3. Consequently, these amendments must be resubmitted and approved during upcoming National Assembly debates starting Tuesday to become law.
This legislative move signals a tightening regulatory environment for self-custody users in France, shifting compliance burdens from centralized exchanges directly onto individual investors. By targeting unhosted wallets, authorities aim to close significant gaps in tax visibility, evidenced by the stark disparity between reported holdings and actual capital gains identified in prior inquiries. The requirement to disclose values annually creates a direct link between private key management and fiscal responsibility, potentially increasing operational friction for retail participants who previously operated outside institutional oversight frameworks.
Despite the Finance Committee's adoption, the rejection of the broader budget revenue section introduces procedural uncertainty, meaning these crypto-specific rules are not yet guaranteed to pass into final legislation. Market observers should monitor the National Assembly's debate starting Tuesday, as the fate of these amendments hinges on their reintegration into the revised budget draft. If enacted, this framework could serve as a precedent for other European jurisdictions seeking to enforce tax compliance without relying solely on regulated intermediaries, thereby reshaping the landscape for decentralized asset ownership.
