Committee Approves Reporting Amendment for Self-Custodied Assets

French lawmakers on Friday adopted an amendment that would insert new disclosure obligations into the country’s general tax code. The measure, labeled I-CF821, targets cryptocurrency holdings maintained outside crypto-asset service providers, such as those stored in personal wallets. It requires taxpayers to report the value of qualifying assets as of December 31 each year if they meet or exceed the €100,000 threshold.

Under the proposal, failure to file the required information could result in penalties reaching €10,000. The Finance Committee, meeting last week, approved the provision alongside other crypto-related changes. This step forms part of broader efforts to improve tax compliance in a sector where holdings have historically seen limited oversight.

Sponsors Link Proposal to Tax Evasion Concerns

Three members of the Liberties, Independents, Overseas and Territories parliamentary group introduced the amendment. Charles de Courson, Jean-Pierre Bataille and Michel Castellani presented it as a means to reduce the gap between reported and actual crypto gains. They cited a parliamentary inquiry that documented €3.5 billion in crypto capital gains for 2021, contrasted with only €400 million declared to authorities that year.

The sponsors highlighted how self-custodied wallets enable investors to avoid current reporting frameworks, particularly among wealthier individuals with assets held abroad or outside regulated platforms. The amendment aims to address this by shifting the onus toward individuals to provide accurate year-end valuations and file declarations when thresholds are crossed.

Related Tax Measures Also Advanced

The wallet reporting rule formed one element of five crypto amendments considered by the Finance Committee. Other proposals include an exit tax on cryptocurrency holdings exceeding €800,000 for taxpayers relocating abroad, and removal of tax deferrals on conversions into fiat-backed stablecoins. These changes were adopted as part of the same legislative package.

Budget Bill Rejection Creates Uncertainty

Despite committee approval, the proposal faces additional hurdles. Lawmakers later rejected the revenue section of the 2027 budget bill by a vote of 31 to 3. The full National Assembly is scheduled to debate the revenue provisions beginning Tuesday, starting from the government’s original draft.

Any crypto amendments, including the wallet disclosure requirement, would need to be resubmitted and approved during these proceedings to take effect. This sequence means the final outcome remains subject to further parliamentary discussion.

Current Status and Next Steps

The amendment would require holders to calculate and report euro-denominated values of self-custodied assets on a fixed December 31 date. It explicitly covers digital assets not managed through service providers, leaving personal wallets and direct holdings within scope. Sponsors emphasized the need for better transparency to support tax investigations and close perceived compliance gaps.

With the revenue section of the budget bill under review, lawmakers will determine whether the crypto provisions gain traction. The process highlights ongoing tensions between regulatory tightening and broader fiscal negotiations in France’s 2027 tax framework.