French Lawmakers Back Reporting Rule for Crypto Wallets Over $112,000

French lawmakers have backed a proposal requiring holders of self custodied crypto assets to report holdings of 100,000 euros or more, worth about $112,000, or face penalties of up to 10,000 euros.

The amendment, numbered I CF821, was adopted by the National Assembly’s Finance Committee on Friday. It would add reporting duties for crypto not held by a service provider, including assets stored in personal wallets, to France’s general tax code.

Tax Evasion Crackdown Behind the Proposal

Holders would need to disclose assets based on their value as of December 31. Sponsors said the measure targets tax evasion, citing a parliamentary inquiry that found crypto capital gains hit 3.5 billion euros in 2021, while only 400 million euros in holdings were declared that year.

Five Crypto Amendments Adopted in Budget Talks

The measure was introduced by Charles de Courson, Jean Pierre Bataille and Michel Castellani of the LIOT parliamentary group. It was one of five crypto amendments adopted, alongside an exit tax on holdings above 800,000 euros when taxpayers move abroad and an end to tax deferrals on conversions into fiat backed stablecoins.

However, the committee later rejected the revenue section of the 2027 budget bill by 31 votes to 3. The crypto amendments must be submitted again during parliamentary debate starting Tuesday before becoming law.