France committee backs reporting for large wallets

TLDR

French lawmakers have endorsed a plan to make large self-custodied crypto wallets reportable to the tax authorities, with fines for not declaring them.

1. Frances Finance Committee approved amendment I-CF821, which would require declaring self-custodied crypto worth at least 100,000 (about $112,000) each year or face up to 10,000 in fines.
2. The rule targets personal wallets outside regulated providers as part of a broader push against tax evasion and fits into tightening EU reporting like DAC8.
3. The measure is not law yet and must be reintroduced and passed in full budget debates, where the text could change or be dropped entirely.

Deep Dive

1. What The Proposal Actually Requires

Amendment I-CF821, adopted by Frances National Assembly Finance Committee, would add a new disclosure rule to the General Tax Code for self-custodied crypto, meaning assets held directly in personal wallets rather than with an exchange or other service provider. Holders would have to report any such crypto if the total value is at least 100,000, using the valuation as of 31 December each year, with penalties up to 10,000 for failing to declare qualifying holdings. Sponsors from the LIOT parliamentary group framed the move as an antitax evasion tool, citing a parliamentary inquiry that found roughly 3.5 billion in crypto capital gains in 2021 but only about 400 million in declared crypto holdings that year, highlighting a large gap between activity and reported balances French reporting rule.

2. Why It Matters For Crypto Users

Unlike existing exchange reporting, this proposal explicitly reaches into self-custody, signaling that large private wallets are no longer assumed to sit outside formal tax visibility. The 100,000 threshold focuses on wealthier holders, but it is high enough that many serious long term investors could be captured by a strong market move. The committee backed several related tax ideas alongside this rule, including exit taxes on crypto portfolios above 800,000 for people moving abroad and taxing swaps into fiat-backed stablecoins, which together point to a more aggressive stance on high value digital asset portfolios overview of the package.

3. Legislative Path And What To Watch Next

For now, this is a committee-level win, not a binding rule. After adopting the crypto amendments, the Finance Committee voted down the revenue section of the broader 2027 budget, which resets the process to the governments original draft. That means the wallet reporting amendment must be resubmitted and approved during upcoming National Assembly debates, and then survive the wider budget process, including potential Senate changes, before becoming law. During that path, lawmakers could alter the 100,000 threshold, narrow or broaden the definition of self-custody, or decide not to include the measure at all.

Conclusion

Frances committee backing for large self-custody wallet reporting is an early but clear signal that regulators are shifting their focus from exchange accounts to significant on chain balances. It is not law yet, but if adopted, it would reshape how wealthy French crypto holders use self-custody and may act as a template for other European tax regimes, making proactive transparency and record keeping a practical priority for anyone with sizable on chain exposure.