French lawmakers have backed a proposal that would require holders of self-custodied crypto assets to report holdings equal or above 100,000 euros ($112,000) or face penalties.
The amendment, numbered I-CF821, was adopted by the National Assembly’s Finance Committee on Friday, and would introduce reporting requirements for crypto that isn’t held by a crypto-asset service provider, including assets stored in personal wallets.
The amendment would add a provision to France’s general tax code. Under the proposal, holders would be required to disclose holdings based on their value as of Dec. 31, and could face fines up to 10,000 euros for failing to declare.
The sponsors said the measure was intended to combat tax evasion, citing a parliamentary inquiry into the taxation of wealthy individuals, which found 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.
Proposal faces legislative hurdles
The amendment was introduced by Charles de Courson, Jean-Pierre Bataille and Michel Castellani, three members of France’s Liberties, Independents, Overseas and Territories (LIOT) parliamentary group.
The wallet disclosure measure was among five crypto-related amendments adopted by the Finance Committee last week.
Other proposals previously reported by Cointelegraph included imposing an exit tax on cryptocurrency holdings exceeding 800,000 euros when taxpayers move abroad and ending tax deferrals on conversions into fiat-backed stablecoins.
Related: French lawmakers back stablecoin swap tax in 2027 budget bill
However, while the Finance Committee adopted the amendments on Friday, it subsequently rejected the revenue section of the broader 2027 budget bill by 31 votes to 3.
Lawmakers are scheduled to begin debating the revenue section of the budget in the National Assembly on Tuesday, starting from the government’s original draft.
The crypto amendments would need to be submitted again and approved during the parliamentary proceedings before becoming part of the legislation, according to French tech publication Clubic.
Magazine: Ledger attack spreads to EU, AI finds ’18 trillion XRP’ bug: Hodler’s Digest
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.