France is considering new reporting requirements for cryptocurrency investors holding at least €100,000 in self-custodied digital assets, as lawmakers seek to strengthen tax oversight.
On October 9, 2026, the Finance Committee of the French National Assembly approved an amendment that would require qualifying cryptocurrency holders to disclose their holdings to tax authorities.
The proposed measure covers crypto assets stored outside centralized exchanges and custodial service providers, including hardware wallets and software wallets controlled directly by their owners.
Investors would need to report the total value of their qualifying holdings as of December 31 each year.
Failure to comply with the proposed declaration requirements could result in financial penalties of up to €10,000.
However, the amendment has only received committee approval and has not yet become legally binding.
Lawmakers Seek to Address Crypto Tax Evasion
The proposal, identified as Amendment I-CF821, was introduced by three lawmakers from the independent LIOT parliamentary group.
The sponsors include Charles de Courson, Jean-Pierre Bataille and Michel Castellani, who argue that greater transparency is necessary to address cryptocurrency-related tax evasion.
Their amendment would introduce a new provision into France's General Tax Code, specifically targeting digital assets held without third-party custodians.
The lawmakers cited a parliamentary study highlighting a substantial discrepancy between estimated cryptocurrency profits and amounts declared to tax authorities.
According to the figures, cryptocurrency capital gains in France reached approximately €3.5 billion in 2021, while taxpayers declared only €400 million.
That difference has raised concerns about the government's ability to monitor taxable activity involving digital assets.
The proposed reporting obligation aims to improve visibility into privately controlled cryptocurrency holdings, which can be more difficult for authorities to track through conventional financial reporting channels.
Proposal Still Faces Parliamentary Approval
Despite receiving support from the Finance Committee, the amendment has not completed France's legislative process.
It must still be introduced during parliamentary consideration and approved through the necessary votes before becoming law.
The proposal's future is particularly uncertain because the committee also rejected the revenue section of the government's 2027 budget proposal by 31 votes to three.
That decision complicates the legislative path for amendments attached to the budget.
The National Assembly is scheduled to begin its plenary examination of the revenue proposal on October 13, 2026.
Until the legislative process concludes, cryptocurrency investors are not subject to the newly proposed €100,000 self-custody reporting threshold.
Additional Crypto Tax Measures Under Consideration
The wallet disclosure requirement forms part of a broader package of five cryptocurrency-related amendments approved by the committee.
Another proposal would introduce an exit tax for individuals leaving France with cryptocurrency holdings exceeding €800,000.
The measure would seek to address potential tax avoidance when investors relocate while holding substantial digital asset portfolios.
Lawmakers have also supported a proposal to end certain tax deferrals associated with conversions into fiat-backed stablecoins.
Under existing arrangements, some cryptocurrency-to-cryptocurrency transactions can benefit from deferred taxation until a taxable disposal occurs.
Changing the treatment of stablecoin conversions could therefore affect how French investors manage their portfolios and realize gains.
However, these measures also remain proposals rather than enacted legislation.
European Authorities Increase Crypto Tax Oversight
France's proposal reflects growing attention toward cryptocurrency tax compliance and financial transparency across Europe.
The European Union's DAC8 framework began its first reporting period in January 2026, requiring covered crypto service providers to collect transaction information concerning EU-resident users.
The French amendment would go further by introducing a direct reporting obligation for qualifying self-custodied holdings, rather than depending exclusively on information supplied by exchanges.
his distinction matters because self-custody allows investors to control their private keys without relying on a financial intermediary.
While self-custody itself would remain permitted under the proposal, holders exceeding the threshold would face additional disclosure responsibilities.
For now, France's proposed €100,000 reporting requirement and €10,000 maximum penalty remain subject to parliamentary approval.
The upcoming budget debate will determine whether these measures advance toward becoming part of France's cryptocurrency tax framework.
