France’s National Assembly Passes Amendment Requiring Reporting of Crypto Holdings Above €100K

France’s National Assembly has approved an amendment requiring taxpayers to declare self-custodied cryptocurrency holdings worth €100,000 or more. The proposal has yet to receive final approval in the country’s 2027 Finance Bill before it can become law.

France Crypto Reporting Rules Target Private Wallets

According to the National Assembly’s voting record, lawmakers approved amendment I-2701 on November 3, with 150 votes in favor. During the parliamentary vote, eight lawmakers didn’t vote, and another 44 opposed the measure.

Earlier, the finance committee of France had voted in favor of the amendment I-CF821, which would require the reporting of self-custodied cryptocurrency assets in the 2027 Finance Bill.

Under the proposed rules, taxpayers must report crypto holdings worth at least €100,000 based on their December 31 value. The requirement applies to digital assets that are held directly by investors and not through regulated crypto service providers.

The original amendment proposed penalties of up to €10,000 for failing to declare qualifying holdings. The proposal was made by lawmakers Charles de Courson, Jean-Pierre Bataille and Michel Castellani during the budget review.

The sponsors expressed worries about the lack of oversight of cryptocurrency assets outside of financial institutions. They pointed to €400m in self-reported Bitcoin holdings and some €3.5bn in cryptocurrency gains for 2021 in their supporting memorandum.

French Lawmakers Face November Budget Deadlines

Although lawmakers approved the amendment, France has not introduced the proposed reporting obligation into law yet. National Assembly is to complete its first reading of the 2027 Finance Bill by November 17.

The parliamentary timetable quoted in the reports indicates that the discussions on the bill will begin in the Senate Nov. 20. The reporting requirement will take effect only if lawmakers retain it in the final approved legislation.

Meanwhile, the Assembly postponed its vote on the budget’s revenue section for the second time. Faustine Fleuret, Morpho’s global head of public affairs, warned that rejecting this section could invalidate approved amendments.

France Reviews Other Crypto Tax Proposals

In separate budget discussions, French parliamentarians voted down the new tax measure on unrealized cryptocurrency gains in case of a tax haven move. The abandoned proposals would have added provisions to the exit tax provisions to digital assets.

Another amendment to the tax code aimed to grant cryptocurrency payments up to a maximum of €1,000 per tax year an exemption. However, lawmakers rejected that proposal by 69 votes to 14, according to parliamentary records.

Earlier, lawmakers approved an October 16 amendment concerning crypto conversions into stablecoins classified as electronic money tokens. The tax treatment proposed is subject to final budget legislation in 2027.