France wants self-custody crypto above €100,000 declared, with €10,000 fines for those who don’t

A French parliamentary committee has backed a proposal requiring crypto investors with €100,000 or more in self-custody wallets to declare those holdings to tax authorities, or face fines of up to €10,000.

Amendment I-CF821, approved by the National Assembly’s Finance Committee during 2027 budget talks, still needs full parliamentary approval before it can take effect, according to Crypto.news.

France crypto rule targets self-custodied holdings above €100,000

The proposed France crypto rule focuses on digital assets held directly by investors rather than stored with regulated cryptocurrency service providers. This includes holdings maintained in personal wallets, where investors control their own private keys.

Under amendment I-CF821, the declaration threshold would be €100,000 or more in total crypto assets held in qualifying self-custody wallets. Investors would need to calculate the value of their holdings as of December 31 of the relevant reporting year.

The amendment was introduced by French lawmakers Charles de Courson, Jean-Pierre Bataille and Michel Castellani as part of the country’s proposed 2027 budget discussions.

The stated justification centres on concerns that cryptocurrency wealth may be underreported for tax purposes. The amendment’s explanatory text points to a parliamentary inquiry that identified a substantial gap between reported crypto capital gains and declared holdings in 2021.

According to the figures cited in the proposal, crypto capital gains reached €3.5 billion that year, while only €400 million in crypto assets was declared to the tax administration. Lawmakers use this disparity to support the case for stronger disclosure requirements.

The proposed France crypto rule would therefore establish a reporting obligation based on the value of self-custodied assets, rather than requiring investors to sell their cryptocurrencies or move them to a centralized exchange.

€10,000 penalties raise compliance concerns for crypto investors

One of the most consequential elements of the France crypto rule is the proposed financial penalty for failing to submit the required declaration. Under amendment I-CF821, non-compliance could attract a fine of up to €10,000.

The potential penalty is significant for investors who hold substantial portfolios in Bitcoin, Ether and other digital assets but do not routinely review their tax reporting obligations.

The proposal concerns the disclosure of qualifying holdings. It does not, in itself, prohibit self-custody or require investors to surrender control of their wallets to financial institutions.

The amendment’s official explanatory statement says the measure seeks to introduce a declaration requirement for self-hosted crypto portfolios valued at €100,000 or more, accompanied by a penalty mechanism reaching €10,000.

These include how portfolio valuations would be calculated, what documentation would be accepted, how different wallets would be treated and how reporting errors would be handled. The precise implementation would depend on the final legislation and any accompanying administrative guidance.

Investors should also distinguish between an unrealized gain and a taxable disposal. The proposed wallet disclosure obligation is a reporting measure in its own right; it should not automatically be interpreted as a tax on the full value of the crypto portfolio.

France crypto rule aligns with Europe’s expanding tax transparency framework

The proposal arrives as European authorities expand their ability to collect and exchange information about cryptocurrency transactions.

The European Union’s DAC8 directive, which took effect on January 1, 2026, requires covered crypto-asset service providers to collect information on reportable transactions involving their users. The first exchanges of information relating to the 2026 reporting year are expected by September 30, 2027.

The European Commission describes DAC8 as a framework for improving tax transparency and combating tax evasion involving crypto assets. Its requirements include identifying reportable users and collecting relevant transaction information through covered service providers.

The France crypto rule would address a related but distinct issue: the direct disclosure of qualifying assets held in self-custody wallets.

DAC8’s service-provider reporting obligations should not be confused with the proposed French requirement for investors to declare their own qualifying holdings.

The practical implications extend beyond France. People with international investments should pay attention to the tax residency rules that apply to them, the reporting obligations in their country of residence and the records they need to maintain for their transactions.

France crypto rule remains subject to parliamentary approval

Despite the Finance Committee’s support, the France crypto rule is not yet an enacted legal requirement.

The amendment forms part of France’s proposed 2027 budget, and further parliamentary approval is necessary before the proposed self-custody disclosure obligation can take effect.

The official amendment identifies the €100,000 threshold, the December 31 valuation date and a potential penalty of up to €10,000. These are the principal terms investors should monitor as the legislative process continues.

The proposal is also one of several cryptocurrency-related tax initiatives considered during the 2027 budget discussions.

Other committee-backed measures address stablecoin conversions, the treatment of cryptocurrency trading losses and the taxation of certain unrealized gains when qualifying investors move their tax residence abroad. Those proposals also require further approval.

The sensible response is to prepare rather than assume the proposed requirements are already in force. Maintaining accurate transaction histories, documenting acquisition costs and keeping reliable records of wallet balances can make future tax reporting easier.

Investors potentially affected should consult a qualified French tax professional before making decisions about their holdings or residency. Moving assets between wallets or transferring them to an exchange should not be assumed to eliminate a reporting obligation.

The France crypto rule represents a proposed expansion of tax disclosure requirements for large self-custodied portfolios. Its final impact will depend on the legislation ultimately adopted, the precise reporting procedures and how French authorities implement the new provisions.