France lawmakers back proposal requiring disclosure of crypto holdings above $112,000

On October 9, 2026, the French National Assembly's Finance Committee adopted Amendment I-CF821 requiring residents to declare self-custodied crypto wallets worth €100,000 ($112,000) or more. Sponsors cite a €3.1 billion tax gap from undeclared 2021 capital gains, but the committee subsequently rejected the overall budget bill, forcing lawmakers to reintroduce the measure. Industry executives strongly opposed the proposal over security risks, citing past violent home invasions and data leaks.

Proposed crypto wallet declaration rules

• ▪Amendment I-CF821 was sponsored by LIOT parliamentary group deputies Charles de Courson, Jean-Pierre Bataille, and Michel Castellani
• ▪Individuals who fail to declare self-custodied crypto holdings under Amendment I-CF821 face fines of up to €10,000 ($11,000)
• ▪On October 9, 2026, the French National Assembly's Finance Committee adopted Amendment I-CF821, requiring individuals to declare self-custodied crypto wallets valued at or above €100,000 ($112,000) annually as of December 31

Rationale for targeting self-custodied crypto

• ▪Regulated crypto service providers in France already face tax reporting obligations, whereas self-custodied wallets previously remained unmonitored
• ▪A French parliamentary inquiry found that crypto capital gains reached €3.5 billion in 2021, while only €400 million was declared to tax authorities
• ▪Sponsors of Amendment I-CF821 introduced the disclosure measure to combat tax evasion and address unrecorded cryptocurrency capital gains

Additional crypto tax provisions approved

• ▪The French Finance Committee approved expanding France's exit tax to cryptocurrency holdings exceeding €800,000 when taxpayers move abroad
• ▪The French Finance Committee voted to treat conversions from cryptocurrency into fiat-backed stablecoins as taxable sales beginning January 2027

Industry reactions and safety concerns

• ▪Nym CEO Harry Halpin criticized the crypto wallet disclosure rule in Amendment I-CF821, citing a case where a French tax agent allegedly sold crypto holders' tax data to criminals
• ▪Helius CEO Mert Mumtaz warned that expanding government data collection increases the risk of sensitive user data leaks
• ▪Zama founder Rand Hindi urged cryptocurrency holders residing in France to leave the country or hire personal security

Next steps for the budget legislation

• ▪To become law, the rejected crypto amendments, including Amendment I-CF821, must be re-submitted and approved during full National Assembly floor debate
• ▪On October 9, 2026, the French Finance Committee rejected the broader 2027 budget bill's revenue section by a vote of 31 to 3
• ▪Debate on the French budget's revenue section resumes in the full National Assembly starting October 13, 2026, using the government's original draft

Crypto disclosure threshold history

• ▪French lawmakers set the higher €100,000 crypto disclosure threshold to address security concerns stemming from recent targeted attacks against cryptocurrency holders in France, including the kidnapping of Ledger co-founder David Balland
• ▪French lawmakers rejected an earlier crypto wallet disclosure proposal preceding Amendment I-CF821 in April 2026 that set a declaration threshold of €5,000

Violent attacks on crypto owners in France

• ▪In 2026, the wife of The Sandbox co-founder Sébastien Borget was targeted in an attempted home kidnapping in Villenoy, France
• ▪In 2025, attackers kidnapped Ledger co-founder David Balland and his wife from their home in France and severed one of Balland's fingers for ransom
• ▪Robbers posing as police officers in Versailles, France forced a couple at knifepoint to transfer $1 million in Bitcoin in 2026