French lawmakers have advanced a tax measure that would force people holding self-custodied crypto assets to report balances above 100,000 euros, with penalties for non-compliance. The proposal targets crypto holdings outside regulated service providers—such as coins stored in personal wallets—an area regulators have struggled to monitor using traditional reporting frameworks.
The amendment, numbered I-CF821, was adopted by the National Assembly’s Finance Committee on Friday. If it ultimately becomes law, it would require disclosures based on the value of the holdings as of December 31 each year and set fines up to 10,000 euros for holders who fail to declare.
Key takeaways
- The measure would apply specifically to self-custodied crypto holdings held outside a crypto-asset service provider, including personal wallet balances.
- Reporting would be triggered when holdings reach or exceed 100,000 euros, based on value as of Dec. 31.
- Non-reporting could result in fines up to 10,000 euros, with the requirement added to France’s general tax code.
- Although the Finance Committee adopted the amendment, the broader 2027 budget bill’s revenue section was rejected later the same day, raising the odds of delay or revision.
- The initiative is part of a wider set of crypto tax amendments being debated in the 2027 legislative process.
What the France proposal would require
The amendment I-CF821 would add a new provision to France’s general tax code to bring personal holdings of crypto into a reporting regime. Under the proposal, holders would need to disclose crypto assets that are not held through a crypto-asset service provider—explicitly encompassing balances stored directly by individuals.
Financial disclosure would be anchored to the end-of-year valuation: the amendment stipulates that holdings should be declared based on their value as of December 31. The committee language also includes enforcement through penalties, with fines up to 10,000 euros for failing to submit the required declaration.
Why lawmakers say the rules are needed
Sponsors of the measure argued that it is designed to curb crypto-related tax evasion. They pointed to findings from a parliamentary inquiry into the taxation of wealthy individuals, which—according to the amendment sponsors—estimated that crypto capital gains totaled 3.5 billion euros in 2021. In contrast, they said only 400 million euros in crypto holdings had been declared to tax authorities during the same year.
That discrepancy is at the center of the policy push. The basic logic is that when crypto is held in self-custody, tax authorities have less direct visibility, making non-compliance easier. By bringing self-custodied holdings into an annual reporting structure, the measure aims to narrow the reporting gap identified by lawmakers.
How it fits into the wider 2027 crypto tax package
This is not the only crypto-related amendment being considered. The Finance Committee adopted five crypto amendments last week, and I-CF821 is among them. Earlier reporting from Cointelegraph described other proposals tied to taxation of cryptocurrency activity, including measures such as imposing an exit tax on cryptocurrency holdings above 800,000 euros when taxpayers move abroad and ending tax deferrals on conversions into fiat-backed stablecoins.
The committee adoption last Friday indicates momentum within the Finance Committee itself. However, the legislative path is still not settled.
Legislative hurdles after the Finance Committee vote
Even though the Finance Committee adopted the crypto amendments on Friday, lawmakers subsequently rejected the revenue portion of the broader 2027 budget bill by 31 votes to 3. Reporting from French broadcaster LCP described the decision and the subsequent scheduling of debates over the revenue section of the budget in the National Assembly.
Those developments matter because they affect timing and the broader context in which the crypto provisions are inserted. According to French tech publication Clubic, the crypto amendments would likely need to be submitted again and approved during the parliamentary proceedings before they can be incorporated into the final legislation.
In other words: committee approval is an important step, but it is not the end of the process. If the budget revenue framework is rewritten, delayed, or otherwise reshuffled in the Assembly debate, lawmakers may revisit the crypto reporting requirements—or refine eligibility thresholds and enforcement details.
Lawmakers are expected to begin debating the revenue section of the budget in the National Assembly on Tuesday, starting from the government’s original draft, setting the stage for what comes next for amendment I-CF821.
What investors and users should watch next
For holders of meaningful crypto balances—especially those using personal wallets—the key question is whether I-CF821 survives the budget debate and is reintroduced and reapproved during the Assembly’s next steps. Readers should watch for changes to the reporting threshold, valuation rules, and enforcement mechanics, as well as clarification on how “self-custody” will be defined in the final text.
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