France Moves to Mandate Declaration for High-Value Crypto Wallets

France is taking a significant step towards regulating personally held crypto assets. A recent amendment passed by the National Assembly proposes a mandatory declaration requirement for individuals holding self-custodied cryptocurrency wallets valued above a specific threshold.

Key Provisions and Declaration Threshold

This amendment, part of the 2027 finance bill, introduces a new obligation for crypto holders. Individuals who control wallets not held by third-party crypto asset service providers must declare them if the total value of assets within those wallets reaches or exceeds €100,000 as of December 31st each year.

  • Valuation Date: December 31st annually
  • Declaration Threshold: Crypto asset value ≥ €100,000
  • Wallet Type: Self-custodied wallets under direct personal control

This regulation specifically targets users of hardware wallets, software wallets, and other non-custodial solutions, bringing them into a formal asset declaration framework for the first time.

Penalties and Legislative Status

To ensure compliance, the amendment establishes a substantial penalty. Failure to declare a qualifying self-custodied wallet could result in an administrative fine of up to €10,000. This level of penalty underscores the authorities' intent to enforce the rule.

It is important to note the amendment's current status. Passed by the National Assembly on November 3rd, it is still in the first reading stage of the legislative process. It must undergo review and potential modification by the Senate before becoming law. However, its proposal and initial passage clearly signal the French legislature's commitment to enhancing tax transparency and regulatory compliance within the crypto asset space.

This move is widely seen as a key indicator of France's, and potentially the broader EU's, efforts to extend traditional financial principles like Anti-Money Laundering (AML) and tax reporting to the rapidly evolving domain of decentralized finance (DeFi) and personal crypto wealth.