French lawmakers have advanced a proposal that would require individuals holding at least €100,000 in self-custodied cryptocurrency to declare those assets to tax authorities every year or face fines of up to €10,000. The measure, amendment I-CF821, was adopted by the National Assembly's Finance Committee on Friday as part of the 2027 budget review, but it still needs further parliamentary approval before becoming law.
The proposed rule would insert a new reporting obligation into France's general tax code. It targets digital assets held outside regulated crypto service providers, including cryptocurrencies stored in personal wallets. Eligible holders would need to report the value of their self-custodied assets as of December 31 each year. The sponsors of the amendment, Charles de Courson, Jean-Pierre Bataille and Michel Castellani from the Liberties, Independents, Overseas and Territories group, said the disclosure requirement is aimed at tax evasion involving assets that may not appear in information submitted by regulated financial institutions.
The proposal follows a parliamentary inquiry that found cryptocurrency capital gains reached €3.5 billion in 2021, while taxpayers declared only about €400 million in cryptocurrency holdings during the same year. Supporters cited those figures even though they cover different categories of crypto activity. Under the amendment, the €100,000 threshold would use the value recorded on December 31 as the reference point. The measure concerns disclosure only and does not ban personal wallets or force holders to transfer assets to regulated custodians.
The Finance Committee also approved several other crypto-related tax amendments. One, I-CF1826, would make conversions from cryptocurrencies into qualifying electronic money tokens taxable starting January 1, 2027. Another, I-CF798, would allow crypto trading losses to be carried forward and deducted from future gains for up to 10 years. A separate exit tax proposal, I-CF1822, would cover certain unrealized cryptocurrency gains for holdings exceeding €800,000 when taxpayers move their tax residence outside France.
France is also moving ahead with the European Union's DAC8 tax reporting framework, which began applying on January 1, 2026. Under DAC8, covered crypto service providers must collect customer information and transaction records, including information on transfers involving self-custody wallets. The first reporting cycle will cover 2026 data, with tax authorities expected to exchange information by September 30, 2027. In September, France's Council of State rejected an emergency challenge by Bull Bitcoin and Paymium against the French decree implementing DAC8, but a separate request to annul the decree remains unresolved.
Despite the committee's initial approval, the Finance Committee later rejected the revenue section of the government's proposed 2027 budget by a vote of 31 to 3. The crypto tax amendments must therefore be introduced again during parliamentary debate, which is scheduled to begin on October 13. According to a Chainalysis estimate cited in the discussion, France generated about $9.4 billion in potentially taxable crypto activity in 2025, though the analytics firm cautioned that the figure does not represent unpaid taxes. French taxpayers declared €368 million in crypto capital gains for 2024 through roughly 24,000 tax filings.
