France Moves to Mandate Reporting for Large Self-Custodied Crypto Holdings

The proposal, introduced by Charles de Courson and six colleagues, mandates that taxpayers disclose the total value of their qualifying crypto assets as of December 31 each year. Failure to comply with the reporting requirement carries a penalty of up to €10,000. While the amendment cleared the Assembly’s first reading, it remains part of a broader 2027 budget process that requires further scrutiny from the Senate before becoming law.

Government officials remain skeptical of the measure’s effectiveness. Public Action and Accounts Minister David Amiel argued that self-reporting obligations are unlikely to deter those intentionally committing tax fraud, suggesting that information collection should instead rely on intermediaries. Meanwhile, the Institut National de Bitcoin has pushed for the proposal’s rejection, warning that forcing users to link their identities to public wallet addresses creates significant privacy risks. The advocacy group highlighted that the current text lacks essential safeguards regarding data retention and access controls.

The debate highlights a growing tension between tax authorities and the decentralized nature of digital assets. While existing European Union directives like DAC8 will soon mandate that service providers report transactions involving self-custody wallets starting in 2027, France’s latest move seeks to close the gap for assets held entirely independently of such platforms. As the budget bill proceeds, lawmakers must still resolve practical questions regarding how the assets will be valued and what specific data taxpayers will be required to submit.