French lawmakers have approved a proposal that requires individuals holding at least 100,000 euros (112,000 US dollars) in self-hosted cryptocurrencies to declare their assets to the tax authorities; otherwise, they may face a fine of up to 10,000 euros.

According to the amendment I-CF821 passed by the Finance Committee of the French National Assembly on Friday, this proposed requirement will apply to digital assets held by entities other than unregulated crypto service providers, including cryptocurrencies stored in personal wallets.

This measure will incorporate a new clause into France's General Tax Code, requiring eligible holders to file declarations based on the asset value as of December 31 each year.

A fine of up to 10,000 euros may be imposed if the required declarations are not submitted. However, this proposal has not yet become law and will only take effect after further approval from parliament.

Three members of the French Freedom, Independence, Overseas and Territories parliamentary group – Charles de Courson ( Charles de Courson ), Jean-Pierre Battaye ( Jean - Pierre Bataille ) and Michel Castellaney ( Michel Castellani ) – submitted this amendment as part of the discussion on France's 2027 budget.

France targets unreported crypto assets

The proposal focuses on cryptocurrencies that are not held by intermediaries, meaning individuals directly control their assets through wallets, rather than relying on crypto exchanges or custodian institutions.

The initiator of the amendment stated that this reporting requirement is aimed at addressing tax evasion issues related to digital assets, as these assets may not appear in the information submitted by regulated financial institutions.

Members of parliament cited the results of a parliamentary investigation into taxes for the wealthy to support the proposal.

The investigation found that in 2021, capital gains from cryptocurrencies amounted to 3.5 billion euros, yet taxpayers declared only 400 million euros in cryptocurrency holdings to the French tax authorities for the same year.

These figures involve different categories of cryptographic activities, where capital gains refer to profits generated from the disposal of assets, while the reported holding amounts refer to the assets that are declared.

Proposition initiators use these findings to support the requirement that individuals holding large amounts of cryptocurrencies disclose assets stored outside of cryptocurrency service providers.

The €100,000 threshold will determine which positions are subject to the proposed reporting requirements. The amendment uses the value recorded on December 31 as the reference point for reporting.

This measure is aimed at the disclosure of holdings and does not imply a ban on personal wallets, nor does it require the transfer of assets to regulated custodian institutions.

France is also separately preparing to collect more information on cryptocurrency transactions through the EU DAC8 tax declaration framework.

France considers other changes to crypto taxation in its 2027 budget

This wallet declaration amendment is one of five cryptocurrency-related proposals passed by the Finance Committee during the deliberation of the 2027 budget.

According to previous reports from crypto.news, French lawmakers have also supported adjustments to the taxation of stablecoins and have proposed measures regarding tax treatment for losses from cryptocurrency transactions as well as for investors who move their residency overseas.

One of the amendments, I-CF1826, was submitted by Nicolas Sansou (N-token issuer las Sansu). It proposes to stipulate that converting cryptocurrencies into eligible electronic currency tokens from January 1, 2027, shall be considered a taxable activity.

French current tax law generally allows for the exchange of eligible cryptocurrencies without immediately triggering capital gains tax.

Before the final legislation is approved, this proposed amendment will change the tax treatment for the exchange of eligible stablecoins.

For investors who purchased cryptocurrencies before January 1, 2027, there are various options for calculating the acquisition cost, including using the documented purchase price or allocating it based on the value of the portfolio at the end of 2026.

Another amendment, I-CF798, was submitted by Daniel Labronna ( Daniel Labaronne ), proposing to allow eligible cryptocurrency trading losses to be carried forward and deducted from future earnings over the next 10 years.

France currently has a separate framework for deducting eligible crypto losses, and the proposed changes will give investors more time to use these losses to offset taxable income.

The members also reviewed a departure tax, which is aimed at certain unrealized cryptocurrency gains incurred by taxpayers when they move their tax residence out of France.

Amendment I-CF1822 submitted by Sang Su and approved by the committee on October 8th, applies to eligible cryptocurrency holdings exceeding 800,000 euros.

France has already applied an exit tax clause to certain financial assets when eligible taxpayers move overseas. This amendment will include eligible digital asset holdings in the relevant tax treatment.

At present, these tax amendments regarding cryptocurrencies approved by the committee have not yet received final approval from parliament.

Cryptography declaration requirements face legal review

As France proposes new wallet declaration requirements, European tax authorities are implementing reporting obligations for cryptocurrency service providers in accordance with DAC8.

The EU framework will come into effect on January 1, 2026, requiring covered service providers to collect information on customers and eligible encrypted transactions.

The reporting obligation includes transfers involving self-hosted wallets, as long as the transactions are conducted through covered cryptocurrency service providers.

The framework requires companies to collect identity information, including customer names and tax identification numbers, as well as related transaction records.

The information collected in 2026 will become part of the first reporting cycle in 2027, and tax authorities expect to exchange relevant data by September 30, 2027.

France faces legal challenges in implementing European reporting rules.

In September, the French Council of State rejected the emergency appeals filed by cryptocurrency companies Bull Bitcoin and Paymium against the decree DAC8 implemented in France.

These companies sought to suspend the decree during the continued proceedings of another legal challenge. Bull Bitcoin expressed concerns regarding the security risks associated with collecting and centrally storing encrypted personal information of users.

The court believes that there is a lack of sufficient urgency in suspending these rules through emergency procedures, and therefore another request to revoke the decree has not yet been addressed.

After the publication of estimates regarding taxable transactions that French users might engage in, attention has been drawn to the crypto tax declaration activities in France.

An analysis in September by Chainalysis estimated that France generated $9.4 billion in crypto-related activities in 2025, which could fall under the taxable category.

The estimate includes $1.7 billion in crypto revenue, $2.5 billion in realized gains, and $5.2 billion in payments across six blockchain networks reviewed by the company.

Chainalysis warns that these figures represent potentially taxable economic activities, rather than unpaid taxes or revenue due to the government.

According to the data cited in this analysis, French taxpayers declared cryptocurrency capital gains amounting to 368 million euros for the year 2024 through approximately 24,000 tax returns.

French crypto tax proposal awaits parliamentary debate

Although the Finance Committee has approved amendments to wallet reporting and other crypto tax proposals, the National Parliament subsequently vetoed the revenue portion of the government's 2027 budget.

The committee voted 31 to 3 against the revenue clause, which means that these amendments do not have the approval of the committee to proceed with the budget text.

Members of parliament are scheduled to begin debates on the revenue section on Tuesday, October 13th, in the National Assembly, starting from the government's original draft.

These cryptocurrency amendments must be re-proposed in the parliamentary process and obtain the necessary number of votes in order to be incorporated into the final legislation.

French technology media Clubic reported that after the revenue section was rejected, the committee's previous approval would not automatically incorporate these amendments into the budget.

Therefore, the parliamentary debates in the next phase will determine whether members of parliament will resubmit this proposal for declaring wallets worth 100,000 euros, as well as other crypto-related tax measures, for consideration.