France’s National Assembly Finance Committee has backed a proposal requiring people and businesses holding at least EUR 100,000 in self-custody cryptocurrencies to report their assets annually. Failure to declare qualifying holdings could result in fines of up to EUR 10,000, although the measure has not become law.
France Sets EUR 100,000 Reporting Threshold for Private Crypto Wallets
Lawmakers approved amendment I-CF821 on October 9 as part of the proposed 2027 budget. Charles de Courson, Jean-Pierre Bataille, and Michel Castellani introduced the measure. It covers crypto wallets controlled directly by their owners rather than held by custody providers. The reporting threshold uses the total value of qualifying crypto assets on December 31 each year.
Under the proposal, eligible individuals and legal entities would disclose their qualifying wallets to French tax authorities. The change would expand Article 1649 bis C of France’s tax code. It would not require investors to transfer their assets to exchanges or prohibit private wallets. Instead, it would establish a reporting obligation for substantial holdings outside custody services.
Proposed Crypto Reporting Fines Could Reach EUR 10,000
The amendment would extend penalties under Article 1729 C ter to cover undeclared self-custody wallets. That provision allows fines reaching EUR 10,000. However, the maximum penalty falls to EUR 5,000 for a first violation during the current calendar year and the preceding three years. The proposed extension would apply these existing penalty limits to qualifying wallets.
The sponsors also raised concerns about unreported cryptocurrency holdings. They cited a parliamentary inquiry showing EUR 3.5 billion in realized cryptocurrency gains during 2021, compared with EUR 400 million in crypto assets declared to tax authorities that year. However, those figures measure different categories: investment profits and reported holdings. Lawmakers used the findings to support additional disclosure requirements.
France Reviews Stablecoin Taxes and Crypto Exit Rules
Meanwhile, the Finance Committee approved other proposed changes to cryptocurrency taxation. Under amendment I-CF1826, conversions into qualifying stablecoins would become taxable transactions starting January 1, 2027. Another proposal, I-CF798, would allow investors to carry qualifying crypto trading losses forward for up to 10 years. Currently, eligible losses generally offset gains within the same year.
Lawmakers also backed amendment I-CF1822, which would extend France’s exit tax to certain unrealized cryptocurrency gains when taxpayers relocate abroad. The proposal covers qualifying households holding more than EUR 800,000 in crypto assets. It also includes residency conditions for affected taxpayers. These proposed tax changes still require parliamentary approval.
French Crypto Proposals Await Parliamentary Debate
The proposed wallet reporting requirement comes alongside the European Union’s DAC8 cryptocurrency tax rules. Since January 1, 2026, covered crypto service providers have been required to collect reportable transaction information. The European Commission expects the first reports in 2027, with tax authorities exchanging covered information by September 30. However, the French proposal would separately address cryptocurrencies held directly in private wallets.
The Finance Committee subsequently rejected the revenue section of the proposed 2027 budget on October 9, voting 31 against and three in favor, with two abstentions. Consequently, the approved crypto amendments will not automatically advance to the full National Assembly.
According to the official parliamentary schedule, budget revenue debates will begin on October 13. Supporters must resubmit the proposals and secure the required votes before they can become law.
ALSO READ: CFTC Issues New Rules to Separate Prediction Markets from Casino-Style Gambling