French lawmakers back reporting rule for crypto wallets over $112K
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
French lawmakers from the Liberties, Independents, Overseas and Territories (LIOT) group have backed an amendment requiring holders of self-custodied crypto assets valued at 100,000 euros ($112,000) or more to report their holdings, or face fines up to 10,000 euros. The amendment, I-CF821, was adopted by the National Assembly’s Finance Committee and aims to add reporting obligations to France’s tax code. The measure targets crypto assets not held by service providers, including personal wallets.
Why it matters
The amendment is intended to combat tax evasion, as a parliamentary inquiry found significant underreporting of crypto holdings—3.5 billion euros in capital gains declared versus only 400 million euros in holdings submitted for taxation in 2021. The source implies this reporting rule could improve tax transparency and enforcement on crypto assets in France.
Key context
The amendment was among five crypto-related proposals adopted by the Finance Committee, which also included an exit tax on holdings over 800,000 euros for taxpayers moving abroad and removing tax deferrals on fiat-backed stablecoin conversions. However, the committee subsequently rejected the revenue section of the broader 2027 budget bill, meaning these amendments must be resubmitted and approved during full parliamentary proceedings.
Key numbers and entities
The amendment number is I-CF821. The threshold for reporting is 100,000 euros ($112,000). Fines for noncompliance can reach 10,000 euros. The parliamentary group sponsoring the amendment includes Charles de Courson, Jean-Pierre Bataille, and Michel Castellani of LIOT. The reported crypto capital gains in 2021 amounted to 3.5 billion euros, while declared holdings were 400 million euros. The Finance Committee vote rejecting the budget’s revenue section was 31 against to 3 in favor.
What remains unclear
It is not yet established whether the amendment will become law, as it must be approved again in the broader National Assembly budget debates. Details about enforcement mechanisms, how holdings will be verified, or the exact compliance process for wallet holders remain unspecified. The source does not clarify whether other European countries have or plan similar reporting rules.