French lawmakers on Tuesday approved a measure that would compel taxpayers to declare self-custodied cryptocurrency holdings once their value reaches or exceeds €100,000, equivalent to about $112,000. The decision forms part of deliberations on the 2027 Finance Bill and still requires retention in the final legislation to take effect.

Details of the Approved Amendment

Amendment I-2701 passed in the National Assembly by a vote of 150 in favor, 44 against and eight abstentions. The rule targets crypto assets held directly by individuals or entities rather than through regulated crypto-asset service providers. Valuation would be assessed solely on December 31 of the relevant tax year.

The provision would insert new language into France’s general tax code requiring declaration of such portfolios when the total value meets the threshold. Failure to report could trigger penalties of up to €10,000, or roughly $11,200. Sponsors of the amendment, led by Charles de Courson of the Liberties, Independents, Overseas and Territories group, cited concerns over limited visibility into assets held outside institutional custody.

Related Votes on Crypto Taxation

In the same session, the Assembly rejected a separate proposal that would have exempted gains from using cryptocurrency to pay for goods and services, limited to a total of €1,000, or about $1,120, within a tax year. That amendment failed by a vote of 69 to 14.

Lawmakers had previously rejected proposals applying exit taxes to unrealized crypto gains when taxpayers shift their tax residence abroad. An earlier amendment approved on October 16 would tax gains from converting crypto assets into stablecoins classified as electronic money tokens under European Union rules. That provision also remains contingent on inclusion in the final budget text.

Legislative Path and Budget Uncertainty

The self-custody reporting requirement sits within the broader 2027 Finance Bill process. The National Assembly aims to complete its first reading by November 17, after which the Senate is scheduled to begin debate on November 20.

Progress has faced delays. The Assembly postponed a planned vote on the budget’s revenue section for a second time, after an original target of October 20. Continued amendment debates have kept the schedule fluid.

Government representatives expressed reservations during debate. Public Action and Accounts Minister David Amiel questioned whether a self-reporting obligation would effectively reach those engaged in tax non-compliance, arguing that information collection through intermediaries might prove more reliable while technical aspects of self-custody remain unresolved.

Scope and Remaining Questions

The measure applies only to holdings outside regulated service providers and does not impose an annual tax on the reported assets themselves. Practical elements such as the precise information required in declarations and the pricing sources for converting asset values into euros are not fully detailed in the amendment text and would likely be addressed in subsequent implementation rules if the provision advances.

Lower-threshold alternatives, including proposals set at €5,000 or €50,000, were rejected before the Assembly settled on the €100,000 level. The outcome leaves the self-custody disclosure rule moving forward as one element among several crypto-related provisions under review in the current budget cycle.