France Gives Cold Wallets a €100K Paper Trail 🧾

France’s National Assembly approved amendment I-2701 on Nov. 3, requiring taxpayers to report self-custodied cryptocurrency holdings worth at least 100,000 euros ($112,000) to tax authorities. The measure passed 150–44, with eight abstentions, according to the Assembly’s official voting record. The threshold would be assessed on Dec. 31 of the relevant tax year, and the reporting requirement remains part of the 2027 Finance Bill.

Proposed penalties for failing to declare qualifying holdings could reach 10,000 euros. The amendment, sponsored by Charles de Courson, Jean-Pierre Bataille and Michel Castellani, would apply to digital assets held directly rather than through regulated crypto service providers. Its sponsors cited oversight concerns, including €400m in self-reported Bitcoin holdings and some €3.5bn in cryptocurrency gains for 2021.

Lawmakers separately rejected an amendment that would have exempted gains on crypto payments for goods and services when payments totaled no more than 1,000 euros ($1,120) during the tax year. The proposal was defeated 69–14, according to the Assembly’s transcript.

The Assembly also rejected two proposals applying exit taxes to unrealized crypto gains when taxpayers transferred their tax residence abroad. On Oct. 16, lawmakers approved an amendment to tax gains from converting crypto into stablecoins classified as electronic money tokens under EU rules. That measure, like the self-custody reporting requirement, must still be retained in the final legislation.

The Assembly postponed its scheduled vote on the budget’s revenue section for the second time, following an originally scheduled vote on Oct. 20. Faustine Fleuret, global head of public affairs at lending protocol Morpho, said 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.” The Assembly faces a Nov. 17 deadline to complete its first reading, while Senate debate is scheduled to begin Nov. 20.