France's National Assembly Finance Committee has adopted an amendment that would require holders of self-custodied crypto assets worth 100,000 euros ($112,000) or more to declare those holdings to tax authorities, with fines reaching 10,000 euros for non-compliance.

The amendment, numbered I-CF821 and adopted on Friday, would insert a provision into France's general tax code covering crypto assets not held by a crypto-asset service provider — including tokens stored in personal wallets. Holders would value and disclose qualifying holdings as of Dec. 31 each year.

The measure's sponsors — Charles de Courson, Jean-Pierre Bataille and Michel Castellani, three members of the Liberties, Independents, Overseas and Territories (LIOT) parliamentary group — framed the proposal as an anti-evasion tool. They cited a parliamentary inquiry into the taxation of wealthy individuals, which found that crypto capital gains reached 3.5 billion euros in 2021, while taxpayers declared only 400 million euros in crypto holdings to authorities that year.

What would the disclosure requirement cover?

The rule targets assets held outside regulated intermediaries. Specifically, it would capture:

• Self-custodied holdings in personal wallets valued at or above 100,000 euros;
• Assets not held by a crypto-asset service provider, the category regulated under France's MiCA-aligned framework;
• Valuations fixed as of Dec. 31 of each tax year.

Failure to declare would expose holders to a fine of up to 10,000 euros.

If enacted, the provision would create a systematic annual reporting obligation for self-custody users — a population French tax authorities currently struggle to observe directly. Compliance costs would fall on individual holders rather than service providers, distinguishing the measure from exchange-level reporting regimes.

Where does the measure stand in the legislative process?

The wallet disclosure rule was one of five crypto-related amendments the Finance Committee adopted last week. Other proposals include an exit tax on cryptocurrency holdings exceeding 800,000 euros when taxpayers relocate abroad and the elimination of tax deferrals on conversions into fiat-backed stablecoins.

The path forward is uncertain. After adopting the amendments, the committee rejected the revenue section of the broader 2027 budget bill by 31 votes to 3. Lawmakers begin debating the revenue section in the National Assembly on Tuesday, working from the government's original draft.

That means the crypto amendments, including I-CF821, must be resubmitted and approved again during parliamentary proceedings before they enter the legislation, according to French tech publication Clubic.

The gap between the inquiry's figures — 3.5 billion euros in capital gains against 400 million euros in declared holdings for 2021 — gives the measure its fiscal rationale. Whether it survives the plenary debate will determine whether France's self-custody users face a formal annual declaration duty, and a 10,000-euro penalty exposure, from the next tax cycle onward.