Key facts
- France proposes requiring crypto holders to report assets over €100,000 ($112,000).
- Failure to report could result in fines up to €10,000 ($11,000).
- The proposal applies to self-custody wallets.
- Crypto holders have voiced concerns about personal security and data privacy.
- Recent "wrench attacks" and crypto-related robberies have occurred in France.
Lawmakers in France have advanced a proposal that would require individuals to report cryptocurrency holdings valued at or above €100,000 ($112,000) by the end of the calendar year, with penalties of up to €10,000 ($11,000) for non-compliance. The proposal, which is not yet law, targets the use of cryptocurrency for fraud and aims to address the perceived underestimation of crypto ownership.
The measure has drawn sharp criticism from some crypto holders and privacy advocates, who argue that such reporting requirements could compromise personal security. Harry Halpin, CEO of privacy infrastructure firm Nym, stated that corrupt employees within the French tax authority pose a danger and referenced a case where a tax agent allegedly sold data to criminals. He suggested that criminals will increasingly use chain analytics and AI surveillance, advocating for shielded cryptocurrencies like Zcash and private VPNs as solutions.
Rand Hindi, founder of privacy protocol Zama, echoed these concerns, tweeting, "If you live in France and hold crypto, leave. If you can't leave, hire personal security for you and your family." This sentiment is amplified by a series of high-profile crypto-related "wrench attacks," robberies, and kidnappings that have occurred in France in recent years. Notable incidents include the kidnapping of Ledger co-founder David Balland and an attempted kidnapping of the wife of The Sandbox co-founder Sébastien Borget.
Mert Mumtaz, CEO of Solana-based infrastructure firm Helius, noted that France leads globally in crypto kidnappings and wrench attacks, expressing concern that the proposed rule would significantly increase the amount of data collected and potentially leaked. The French National Assembly's Finance Committee also voted to treat swaps from crypto into stablecoins as taxable sales from January 2027 and to extend France's exit tax to crypto held by households exceeding €800,000. However, the committee later rejected the budget's entire revenue section, meaning these crypto amendments may need to be reintroduced.