French lawmakers have backed a new proposal that could change how some cryptocurrency users handle tax disclosures in France. The amendment targets holders of self-custodied crypto assets—that is, assets not held with a crypto-asset service provider—including assets stored in personal wallets.

Under the proposal, any holding worth €100,000 or more, equivalent to about $112,000, would be subject to a new reporting requirement. Owners of these assets would be required to declare them based on their value on December 31 each year.

The amendment is numbered I-CF821 and was approved by the Finance Committee of the National Assembly on Friday. If it becomes law, it will be added to France’s General Tax Code, expanding tax reporting requirements for digital assets held outside custodial platforms.

The proposed wording states that failure to report could expose holders to fines of up to €10,000. This makes compliance essential for anyone in France who holds their own crypto assets.

The amendment’s sponsors said its aim is to combat tax evasion. They cited a parliamentary inquiry into the taxation of wealthy individuals, which found that capital gains from cryptocurrencies amounted to €3.5 billion in 2021, while only €400 million worth of crypto holdings was reported to the tax authorities that year.

The amendment was introduced by three members of the LIOT parliamentary group: Charles de Courson, Jean-Pierre Bataille, and Michel Castellani. It was one of five cryptocurrency-related amendments approved by the Finance Committee during the same week.

Other proposals previously put forward included imposing an exit tax on crypto holdings exceeding €800,000 when taxpayers move abroad, and ending tax deferrals on conversions into fiat-backed stablecoins.

However, despite the Finance Committee approving these amendments, it later rejected the revenue section of the 2027 budget bill by 31 votes to 3. Members of the National Assembly are due to begin debating this section on Tuesday, starting from the government’s original draft.

The amendment still faces a lengthy legislative path: it must be resubmitted and approved during the parliamentary process before it can become law.

For users, this means that tracking the value of self-custodied wallets, documenting holdings, and preparing for tax reporting may become more important in the period ahead.

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