Key facts
- French lawmakers backed a proposal to require reporting of self-custodied crypto assets valued at 100,000 euros ($112,000) or more.
- Holders could face fines of up to 10,000 euros for failing to declare qualifying assets.
- The measure aims to combat tax evasion, following findings of significant undeclared crypto capital gains.
- The amendment was adopted by the National Assembly’s Finance Committee.
- Other adopted amendments include an exit tax for crypto holdings over 800,000 euros when moving abroad.
- The crypto amendments must be approved in further parliamentary proceedings to become law.
French lawmakers have advanced a proposal that would mandate the reporting of self-custodied cryptocurrency holdings exceeding 100,000 euros ($112,000). The amendment, adopted by the National Assembly’s Finance Committee, aims to enhance tax compliance by requiring individuals to declare assets stored in personal wallets, not held by a crypto-asset service provider.
Under the proposed rules, holders would need to disclose the value of their qualifying crypto assets as of December 31st each year. Failure to comply could lead to fines of up to 10,000 euros. Proponents of the measure highlighted findings from a parliamentary inquiry into the taxation of wealthy individuals, which indicated that while crypto capital gains reached an estimated 3.5 billion euros in 2021, only 400 million euros in holdings were declared to tax authorities that year.
The amendment was introduced by LIOT group members Charles de Courson, Jean-Pierre Bataille, and Michel Castellani. It was among five crypto-related proposals approved by the Finance Committee. Other measures include an exit tax for taxpayers relocating abroad with crypto assets exceeding 800,000 euros and the elimination of tax deferrals on conversions into fiat-backed stablecoins.
However, the path to legislation is not guaranteed. The committee subsequently rejected the revenue section of the broader 2027 budget bill. The crypto amendments will need to be re-submitted and approved during upcoming parliamentary debates in the National Assembly before they can become law.