New Regulatory Framework for Cryptocurrency in France
French legislators are proposing a new regulatory framework that will obligate owners of self-custodied cryptocurrency assets with values exceeding 100,000 euros (approximately $112,000) to officially disclose their holdings. Those who fail to comply could face hefty fines up to 10,000 euros. This initiative was approved by the Finance Committee of the National Assembly on Friday and is intended to close loopholes in tax compliance.
Details of the Proposal
The amendment, designated as I-CF821, seeks to incorporate these reporting requirements into France’s tax laws and applies to crypto assets not managed by licensed service providers, including privately held wallets.
Under this proposal, individuals must report the value of their crypto holdings as of December 31. The move comes in light of findings from a parliamentary investigation into taxation among affluent citizens, which revealed that while crypto-related capital gains reached a staggering 3.5 billion euros in 2021, only a mere 400 million euros worth of these assets were reported to tax officials that same year.
Support and Additional Measures
Spearheaded by Charles de Courson, Jean-Pierre Bataille, and Michel Castellani from the Liberties, Independents, Overseas and Territories (LIOT) parliamentary group, the disclosure requirement is one of several amendments concerning cryptocurrency approved by the Finance Committee. Other notable measures include:
- A proposed exit tax on cryptocurrency holdings exceeding 800,000 euros for individuals relocating abroad.
- Restrictions on tax deferrals for conversions into fiat-pegged stablecoins.
Future Considerations
Despite gaining traction in the committee, the revenue components of the broader 2027 budget plan were rejected shortly thereafter by a significant margin of 31 to 3 votes. Lawmakers are slated to revisit the budget’s revenue section next week in the National Assembly, commencing with the government’s original proposal. Any crypto-related amendments will need to be reintroduced and receive further approval to be enacted.
This development highlights an ongoing effort by French authorities to regulate the growing influence of cryptocurrency in the economy.
