France backs reporting rules for self-custodied crypto

Lawmakers in the French National Assembly have approved a legislative amendment that introduces mandatory reporting for self-custodied digital currency holdings. Under the newly adopted proposal, individuals must declare holdings valued at 100,000 euros or more, which equates to approximately $112,000. The threshold evaluation will occur annually on December 31 of the relevant tax year. Amendment I-2701 secured adoption during a legislative session through a 150 to 44 vote, accompanied by eight abstentions, according to the official voting record of the Assembly.

This measure forms a component of the broader 2027 Finance Bill. For the reporting requirement to take full legal effect, it must be retained as the legislative process advances. The National Assembly faces a deadline of November 17 to finish its initial review of the financial package, while the Senate is scheduled to commence its own debate on November 20. Alongside this decision, the Assembly postponed its planned vote on the revenue section of the budget for a second time while deliberations on various amendments continued.

Faustine Fleuret, global head of public affairs at the lending protocol Morpho, noted that while delaying the vote does not introduce an immediate major alteration, the potential rejection of the budget revenue segment could cause the entire bill to fail in the National Assembly, which would discard provisions adopted through amendments. During the same legislative period, lawmakers voted down a proposal that would have exempted small crypto payment gains under 1,000 euros from taxation for goods and services. The chamber also rejected two separate exit tax proposals concerning unrealized digital asset gains when individuals move their tax residence abroad, though they previously approved a separate rule to tax gains from converting digital currencies into specific stablecoins.

France backs digital asset oversight

France backs new reporting mandates for self-custodied digital assets exceeding 100,000 euros.

Why it matters

The proposed rules alter the compliance landscape for digital asset holders in France by establishing formal disclosure obligations for large self-custodied portfolios. While the measure still requires passage through the remainder of the budgetary process to become law, it signals heightened regulatory scrutiny on private digital holdings.