France committee backs self-custody crypto reporting

TLDR

Frances National Assembly Finance Committee has backed a proposal that would make large self custody crypto wallets reportable to tax authorities.

1. The committee approved an amendment requiring declaration of self custodied crypto worth at least 100,000, with fines up to 10,000, but it is not law yet.
2. The rule targets tax transparency and anti evasion, not a ban on personal wallets, although it raises serious privacy and personal safety concerns for big holders.
3. Crypto users should watch upcoming parliamentary budget votes and EU DAC8 implementation, which together will define how self custody reporting actually works in practice.

Deep Dive

1. What Was Approved

Committee members backed amendment I CF821, which would require anyone holding at least 100,000 in crypto outside regulated providers, including personal wallets, to declare the value as of 31 December each year. Noncompliance could bring fines of up to 10,000 according to reporting from both crypto.news and Yahoo Finance.

The proposal sits inside Frances 2027 budget package and was only backed at committee stage. The committee then rejected the revenue section, which means all these crypto tax amendments must be re tabled and passed again in full Assembly debate before they become law.

Sponsors framed the rule as a tool against tax evasion, citing inquiries that estimated billions of euros in crypto gains versus a much smaller amount of declared holdings.

2. Impact On Self Custody And Safety

The measure concerns disclosure rather than custody. It does not require users to move coins to exchanges or custodians. You could still hold Bitcoin or other assets in your own hardware or software wallet.

However, a registry of large self custody holders could become a new risk surface. French reports have linked a rise in kidnappings and violent attacks targeting crypto holders, and critics worry that leaks or abuse of tax data could make wealthy wallet owners easier to target.

3. What To Watch Next

The proposal still faces several hurdles. It must be resubmitted during National Assembly budget debates and win majority support on the revenue vote dates described in the committee coverage. A minority government and contentious fiscal politics add uncertainty.

In parallel, EU level DAC8 rules already require regulated providers to collect and share customer and transaction data, including some interactions with self custody wallets. Frances domestic wallet reporting would sit on top of that framework and could be refined or constrained by future EU guidance.

For crypto users, the practical impact will depend on details such as valuation methods, enforcement priorities and whether legislators adjust thresholds or add extra privacy safeguards in later rounds.

Conclusion

France is moving toward treating large self custody crypto holdings more like other significant financial assets, with tax reporting and potential penalties for non disclosure.

If the proposal is enacted, it will not end self custody, but it would shift the balance between autonomy, privacy and regulatory oversight for big French holders and could influence future self custody debates elsewhere in Europe.