French lawmakers have backed a proposal requiring holders of self-custodied crypto assets to report holdings equal to or above 100,000 euros ($112,000) or face penalties.
The amendment, numbered I-CF821, was adopted by the National Assembly's Finance Committee on Friday. It would introduce reporting requirements for cryptocurrency not held by a crypto-asset service provider, including assets stored in personal wallets.
Under the proposal, holders would be required to disclose holdings based on their value as of December 31. Those failing to declare would face fines up to 10,000 euros.
Tax evasion concerns cited
The amendment's sponsors said the measure was intended to combat tax evasion. They cited a parliamentary inquiry into the taxation of wealthy individuals, which found that crypto capital gains reached 3.5 billion euros in 2021, while only 400 million euros in crypto holdings were declared to tax authorities that year.
The amendment was introduced by Charles de Courson, Jean-Pierre Bataille and Michel Castellani, three members of France's Liberties, Independents, Overseas and Territories (LIOT) parliamentary group.
Additional crypto measures
The wallet disclosure measure was among five crypto-related amendments adopted by the Finance Committee. Other proposals included imposing an exit tax on cryptocurrency holdings exceeding 800,000 euros when taxpayers move abroad and ending tax deferrals on conversions into fiat-backed stablecoins.
Uncertain path forward
While the Finance Committee adopted the amendments on Friday, it subsequently rejected the revenue section of the broader 2027 budget bill by 31 votes to 3.
Lawmakers are scheduled to begin debating the revenue section of the budget in the National Assembly on Tuesday, starting from the government's original draft. The crypto amendments would need to be submitted again and approved during parliamentary proceedings before becoming part of the legislation.
