France Advances €100,000 Self-Custody Crypto Reporting Rule

By Tom Whitfield

France’s National Assembly voted 150-44, with eight abstentions, on Tuesday to require reporting of self-custodied cryptocurrency holdings totaling at least 100,000 euros ($112,000). Amendment I-2701, adopted according to the Assembly’s official voting record, would assess the threshold on Dec. 31 of the relevant tax year.

What would the reporting rule change?

If the 2027 Finance Bill becomes law in its current form, qualifying taxpayers would have to report those holdings to French tax authorities. The amendment creates a reporting duty; no separate tax at the €100,000 threshold is identified.

The provision would create a year-end inventory and valuation exercise for holders above the threshold, even without a sale. The cited material does not specify a filing channel, valuation method or penalty, while tax-compliance teams would still need to establish each qualifying portfolio’s total value on Dec. 31.

Can the amendment survive the budget process?

The reporting requirement forms part of the 2027 Finance Bill and must be retained in the final legislation to become law. The Assembly faces a Nov. 17 deadline to complete its first reading, while Senate debate is scheduled to begin Nov. 20.

Lawmakers postponed Tuesday’s scheduled vote on the budget’s revenue section for the second time as they continued debating amendments. The vote had originally been scheduled for Oct. 20.

Morpho’s Faustine Fleuret, global head of public affairs at the lending protocol, told Cointelegraph: “The postponement itself does not introduce a significant change.” She added that the “likely rejection” of the revenue section could “result in the rejection of the entire bill in the National Assembly, including provisions adopted by way of amendments.”

That risk makes the 150-44 Assembly vote a procedural milestone, not final approval. If lawmakers reject the entire bill, the self-custody reporting amendment could fall with it despite winning a standalone majority.

Which other crypto tax changes failed?

In a separate 69-14 vote, the Assembly defeated an amendment that would have exempted gains on crypto payments for goods and services if total payments did not exceed 1,000 euros ($1,120) during the tax year. The Assembly transcript records the result.

On Friday, the Assembly also rejected two proposals that would have applied exit taxes to unrealized crypto gains when taxpayers transferred their tax residence abroad. Those measures failed at the Assembly stage.

The defeated payment proposal would not have provided the requested exemption for qualifying crypto transactions. The unrealized-gain exit-tax options also remain outside the Assembly-approved text.

What tax provisions remain in the bill?

Lawmakers approved an amendment on Oct. 16 that would tax gains from converting cryptocurrency into stablecoins. The proposal covers stablecoins classified as electronic money tokens under European Union rules and, like I-2701, still needs to survive in the final law.

The French Senate has separately adopted a bill for automatic sharing of crypto tax data. The provided material gives no vote count, implementation date or detail on its interaction with I-2701.

The votes now leave reporting and stablecoin-conversion gains with Assembly approval, while the payment exemption and unrealized-gain exit-tax proposals lack it. Final passage will determine which of those measures enter French law.

The next fixed test comes Nov. 17, when the Assembly faces its first-reading deadline, followed by Senate debate scheduled for Nov. 20. Lawmakers must preserve I-2701 through that process for the €100,000 reporting threshold to take effect.