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French lawmakers back reporting rule for crypto wallets over $112K
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French lawmakers have backed a proposal requiring holders of self-custodied crypto assets to report holdings worth 100,000 euros ($112,000) or more. The amendment, numbered I-CF821, was adopted by the National Assembly’s Finance Committee on Friday. It would add a provision to France’s general tax code. Holders could face fines up to 10,000 euros for failing to declare.
The measure targets crypto not held by a crypto-asset service provider, including assets stored in personal wallets. Under the proposal, holders would disclose holdings based on their value as of Dec. 31. The sponsors said the rule aims to combat tax evasion. They cited a parliamentary inquiry into the taxation of wealthy individuals.
That inquiry found crypto capital gains reached 3.5 billion euros in 2021. Only 400 million euros in crypto holdings were declared to tax authorities that year. The amendment was introduced by Charles de Courson, Jean-Pierre Bataille and Michel Castellani, three members of France’s LIOT parliamentary group.
The wallet disclosure measure was among five crypto-related amendments adopted by the Finance Committee last week. Other proposals included an exit tax on cryptocurrency holdings exceeding 800,000 euros when taxpayers move abroad. Another would end tax deferrals on conversions into fiat-backed stablecoins.
The proposals face legislative hurdles. Although the Finance Committee adopted the amendments on Friday, it later rejected the revenue section of the broader 2027 budget bill by 31 votes to 3. Lawmakers are scheduled to begin debating the revenue section in the National Assembly on Tuesday, starting from the government’s original draft.
The crypto amendments would need to be submitted and approved during parliamentary proceedings before becoming law, according to Clubic. That means the wallet reporting rule is not yet final. Supporters argue it could improve tax transparency, while critics may question compliance and privacy. Lawmakers will continue deliberations in the coming days.
