France Proposes €10,000 Fines for Undeclared Crypto Holdings Above €100,000

France’s National Assembly Finance Committee has backed a proposal requiring individuals to declare self-custodied cryptocurrency holdings worth at least €100,000, approximately $112,000. The proposed measure would impose fines of up to €10,000 for failing to disclose qualifying assets. However, the amendment has not become law and must clear further parliamentary hurdles before taking effect.

The proposal, identified as amendment I-CF821, would introduce new reporting obligations into France’s General Tax Code. It targets cryptocurrency held directly by individuals outside regulated crypto service providers, including Bitcoin and other digital assets stored in personal wallets.

What the Proposed Crypto Reporting Rule Means

Under the amendment, eligible holders would need to report their cryptocurrency holdings based on their total value as of December 31 each year. The requirement focuses on assets held without an intermediary rather than cryptocurrency maintained through regulated custody services.

The proposed penalties could reach €10,000 for failing to submit the required declaration. The measure would not ban self-custody wallets or require investors to transfer their assets to cryptocurrency exchanges.

Lawmakers supporting the proposal argue that greater transparency could help French tax authorities identify undeclared digital assets and address potential tax evasion.

The amendment cites findings from a parliamentary inquiry into taxation among wealthy individuals. According to the document, cryptocurrency capital gains reached €3.5 billion in 2021, while taxpayers declared €400 million in cryptocurrency holdings that year. These figures measure different categories of financial activity and do not represent directly comparable amounts of unpaid tax.

France Considers Broader Cryptocurrency Tax Changes

The disclosure proposal forms part of a wider debate over cryptocurrency taxation in France. The Finance Committee also backed other amendments concerning stablecoin taxation, cryptocurrency trading losses and an exit tax targeting certain digital asset holders moving abroad.

However, the legislative process remains uncertain. The committee subsequently rejected the revenue section of the proposed 2027 budget, meaning the cryptocurrency amendments will require further consideration during parliamentary proceedings.

Debate on the budget’s revenue provisions is scheduled to begin in the National Assembly on October 13, 2026. Lawmakers must secure the necessary approvals before any of the proposed measures can become law.

For cryptocurrency investors, the immediate priority is distinguishing between an approved committee amendment and an enacted legal requirement. Holders of substantial self-custodied portfolios should monitor the legislative process before drawing conclusions about their future reporting obligations.