France Proposes Mandatory Reporting for Large Self-Custodied Crypto Holdings
French lawmakers approve amendment requiring disclosure of self-custodied crypto assets exceeding 100,000 euros.
1New Reporting Threshold Approved
The French National Assembly recently adopted Amendment I-2701, which mandates that taxpayers report self-custodied cryptocurrency holdings valued at 100,000 euros or more. This threshold, equivalent to approximately 112,000 dollars, would be assessed annually on December 31. The measure passed with a 150–44 vote, signaling a significant shift in national digital asset oversight.
2Legislative Process and Timeline
This reporting requirement is currently integrated into the 2027 Finance Bill. The National Assembly must finalize its first reading by November 17, with Senate debates scheduled to commence on November 20. For the amendment to become enforceable law, it must survive the entire legislative budget process and remain in the final version.
3Budgetary Hurdles and Risks
The broader 2027 Finance Bill faces significant uncertainty as the National Assembly has postponed the vote on the revenue section twice. Experts suggest that a potential rejection of this revenue section could lead to the collapse of the entire bill, effectively nullifying the crypto reporting provisions adopted through these recent legislative amendments.
4Rejection of Crypto Payment Exemptions
Alongside the reporting mandate, lawmakers explicitly rejected a proposal to exempt crypto-based payments for goods and services from taxation. This defeated amendment sought to provide relief for transactions totaling under 1,000 euros annually. The proposal failed with a 69–14 vote, indicating a strict stance against easing tax burdens on small-scale crypto usage.
5Stablecoin Conversion Tax Developments
In a separate move on October 16, the Assembly approved taxing gains derived from converting cryptocurrencies into stablecoins. This specific measure targets stablecoins classified as electronic money tokens under European Union regulations. Like the self-custody reporting rule, this provision remains subject to final legislative retention before it can be officially enacted.
6Exit Tax Proposals Defeated
Legislators also evaluated proposals that would have applied exit taxes to unrealized crypto gains for taxpayers moving their residence abroad. These measures were rejected by the Assembly on Friday. The decision reflects a current legislative focus on domestic reporting rather than imposing capital gains taxes on individuals relocating their tax residency outside France.
7Broader Regulatory Context
These developments occur within a wider framework of increasing scrutiny over digital assets in France. The Senate has already adopted a separate bill concerning the automatic sharing of crypto tax data. These combined efforts highlight a systematic approach to integrating decentralized finance activities into the traditional national tax reporting and compliance infrastructure.
8Implications for Crypto Holders
If enacted, the 100,000 euro reporting threshold will significantly increase the compliance burden for high-net-worth individuals holding assets in self-custody. Investors must monitor the upcoming Senate debates closely, as the final status of the 2027 Finance Bill will determine the immediate future of these reporting obligations and broader crypto taxation policies.