France Moves to Mandate Disclosure of Personal Crypto Wallets Holding More Than 100,000 Euros
Summary
- France’s National Assembly Finance Committee adopted tax amendment I-CF821, which would require investors holding crypto assets worth more than 100,000 euros in personal wallets to report them.
- If the amendment takes effect, investors will have to report to tax authorities when the value of crypto assets in a personal wallet is at least 100,000 euros as of Dec. 31 each year, with non-compliance punishable by a fine of up to 10,000 euros.
- France’s parliament is discussing five amendments aimed at preventing tax evasion and tightening crypto taxation, including mandatory reporting for personal wallets, an exit tax, and an end to tax-deferral benefits.
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France is moving to require investors holding more than 100,000 euros ($115,000) in crypto assets in personal wallets to report those holdings.
Cointelegraph reported on October 12 that the Finance Committee of France’s National Assembly adopted tax amendment I-CF821 on October 9, creating a reporting requirement for self-custodied crypto assets. The measure applies to assets individuals hold directly rather than through crypto-asset service providers such as exchanges.
If the amendment takes effect, individuals would have to report crypto holdings to tax authorities when the value of assets in personal wallets is 100,000 euros or more as of Dec. 31 each year. Failure to comply could result in a fine of as much as 10,000 euros.
The measure is intended to prevent tax evasion involving crypto assets. Lawmakers behind the bill cited findings from a French parliamentary inquiry into the taxation of wealthy individuals. The inquiry found that capital gains from crypto totaled about 3.5 billion euros in 2021, while crypto holdings reported to tax authorities that year amounted to just 400 million euros.
France’s parliament is also discussing other steps to tighten crypto taxation. They include an exit tax on crypto holdings above 800,000 euros when an investor moves abroad and eliminating tax-deferral benefits when crypto is converted into fiat-backed stablecoins. The finance committee adopted five crypto-related amendments last week, including the personal-wallet reporting requirement.
Still, additional legislative steps are needed before the rules can take effect. After adopting the amendments, the National Assembly’s Finance Committee rejected the revenue section of the 2027 budget bill by 31 votes to 3. As a result, the full Assembly is scheduled to begin reviewing the government’s original budget proposal on October 13, and the crypto-related amendments must also be resubmitted and approved by parliament before they can be enacted.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.