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ZEC $1,291 France proposes €10,000 fines for undeclared self-custody crypto holdings
French lawmakers have backed a proposal that would impose up to €10,000 in fines for undeclared self-custody crypto holdings over €100,000.
Key takeaways
- €100,000 reporting threshold. The proposed rule applies only to self-custody crypto holdings valued at €100,000 or more as of December 31 each year.
- €10,000 maximum fine. Failure to report qualifying self-custody holdings could result in fines of up to €10,000 under the proposed amendment.
- €3.5B vs €400M gap. A 2021 parliamentary inquiry found €3.5 billion in crypto capital gains but only €400 million in declared crypto holdings that year.
What happened
French lawmakers have approved a proposal that would require individuals holding at least €100,000 in self-custody cryptocurrency to declare those assets to tax authorities each year. The measure, known as amendment I-CF821, was adopted by the French National Assembly's Finance Committee on October 12, 2026, and covers digital assets stored in personal wallets outside regulated crypto service providers. People who fail to submit the required declaration could face fines of up to €10,000. The amendment was introduced by lawmakers Charles de Courson, Jean-Pierre Bataille and Michel Castellani as part of France's 2027 budget discussions.
Why it matters
The proposal is designed to reduce tax evasion related to self-custodied crypto assets that may not be visible to tax authorities via regulated financial institution reports. Lawmakers cited findings from a 2021 parliamentary inquiry that identified €3.5 billion in cryptocurrency capital gains that year, compared to just €400 million in crypto holdings declared by taxpayers to French tax authorities. If passed, the rule would expand existing French tax disclosure requirements, which currently only apply to foreign-based crypto wallet providers, to cover personal non-custodial wallets.
Background
The proposal is separate from France's ongoing implementation of the European Union's DAC8 tax reporting framework, which will require crypto service providers to collect and share user transaction data with tax authorities. Under EU rules, providers are scheduled to submit their first round of DAC8 data in 2027.
What is still unclear
- It is not yet clear if the proposed self-custody crypto reporting rule will receive full parliamentary approval, as the Finance Committee rejected the revenue section of the draft 2027 budget after backing the amendment.
Questions readers ask
What is France's proposed self-custody crypto reporting rule?
The proposal, amendment I-CF821, would require French individuals with at least €100,000 in self-custody crypto holdings to declare those assets to tax authorities annually. Failure to report could lead to fines of up to €10,000.
What is the threshold for the French crypto holdings declaration?
The proposed rule applies only to self-custody cryptocurrency holdings valued at €100,000 or more as of December 31 each year.
Is the French self-custody crypto reporting requirement law yet?
No, the proposal has not passed into law. It still requires further parliamentary approval after being backed by the National Assembly's Finance Committee.
What is the EU DAC8 crypto reporting framework?
DAC8 is an EU rule that requires crypto service providers to submit user transaction data to tax authorities, with the first submissions due in 2027.
