France Moves Forward with Crypto Wallet Declaration Requirements Above $112K Threshold
A proposal mandating the declaration of self-custody cryptocurrency holdings valued at 100,000 euros or more has received support from French legislators, although additional legislative approval remains necessary.
A proposal requiring individuals holding self-custodied cryptocurrency assets to report balances that meet or exceed 100,000 euros ($112,000) has received approval from French legislators, with noncompliance potentially resulting in financial penalties.
The legislative amendment, designated as I-CF821, received approval from the Finance Committee of the National Assembly this past Friday, establishing new reporting obligations for cryptocurrency assets not maintained through a crypto-asset service provider, encompassing digital assets kept in individual wallets.
This amendment seeks to incorporate a new provision into the general tax code of France. According to the terms of the proposal, cryptocurrency holders would need to report their holdings based on valuations taken as of Dec. 31, with potential penalties reaching up to 10,000 euros imposed on those who fail to make the required declaration.
According to the amendment's sponsors, the legislative initiative aims to address tax evasion issues, referencing a parliamentary investigation into taxation of high-net-worth individuals that revealed cryptocurrency capital gains totaled 3.5 billion euros in 2021, despite only 400 million euros in crypto assets being reported to tax authorities during that same year.
Proposal faces legislative hurdles
Charles de Courson, Jean-Pierre Bataille and Michel Castellani, all members of the Liberties, Independents, Overseas and Territories (LIOT) parliamentary group in France, introduced the amendment.
Among five cryptocurrency-focused amendments that received approval from the Finance Committee during the previous week, the wallet disclosure requirement was included.
Additional proposals that Cointelegraph had previously covered included the implementation of an exit tax targeting cryptocurrency assets valued above 800,000 euros for taxpayers relocating overseas and the elimination of tax deferral benefits on exchanges into stablecoins backed by fiat currency.
Despite the Finance Committee's adoption of these amendments on Friday, the committee proceeded to vote down the revenue portion of the comprehensive 2027 budget bill by a margin of 31 votes to 3.
The National Assembly has scheduled deliberations on the budget's revenue section to commence on Tuesday, with discussions beginning from the administration's initial draft proposal.
According to French technology news outlet Clubic, the cryptocurrency-related amendments would require resubmission and subsequent approval throughout the parliamentary debate process before they could be incorporated into final legislation.