French Lawmakers Back Crypto Wallet Reporting Rule Above $112K

France's National Assembly Finance Committee has adopted an amendment requiring holders of self-custodied crypto wallets to disclose assets valued at or above €100,000 ($112,000) or face fines of up to €10,000. The proposal, numbered I-CF821, was approved on Friday and would amend France's general tax code to extend reporting obligations to crypto assets held outside of regulated crypto-asset service providers, including personal and hardware wallets. Holders would be required to declare holdings based on their value as of December 31 each year.

The measure was introduced by Charles de Courson, Jean-Pierre Bataille, and Michel Castellani, three members of the Liberties, Independents, Overseas and Territories (LIOT) parliamentary group. The sponsors cited a parliamentary inquiry into the taxation of wealthy individuals, which found that crypto capital gains reached €3.5 billion in 2021 while only €400 million in crypto holdings were declared to French tax authorities that same year. Lawmakers argued the disclosure mandate is necessary to close the gap and combat tax evasion in the digital economy. The wallet reporting rule was one of five crypto-related amendments approved by the Finance Committee, alongside proposals for an exit tax on crypto holdings exceeding €800,000 for taxpayers relocating abroad and the elimination of tax deferrals on conversions into fiat-backed stablecoins.

Despite the committee's support, the amendment faces significant legislative hurdles. The Finance Committee subsequently rejected the revenue section of the broader 2027 budget bill by a 31-to-3 vote, meaning lawmakers will begin debating the budget from the government's original draft when the National Assembly reconvenes on Tuesday. According to French tech publication Clubic, the crypto amendments will need to be reintroduced and approved during full parliamentary proceedings before they can become law, a process that leaves their enactment uncertain as the legislative session progresses.