France Targets Self-Custody Crypto With €10,000 Penalty Proposal

The proposal, introduced by a group of representatives from the Liberties, Independents, Overseas and Territories parliamentary group, targets assets held in personal wallets rather than through regulated exchanges. By requiring a year-end valuation report, officials hope to capture taxable gains that currently evade institutional reporting mechanisms. This move follows a 2021 parliamentary inquiry finding that while crypto capital gains reached €3.5 billion, taxpayers reported only €400 million in holdings.

Despite the Finance Committee’s initial approval, the measure remains in legislative limbo. The committee recently rejected the broader revenue section of the 2027 budget, meaning the amendment must be reintroduced and passed during upcoming parliamentary debates in the National Assembly. If enacted, the requirement would complement the European Union’s broader DAC8 tax reporting framework, which already mandates that service providers collect customer data on transactions involving self-custody wallets. The committee also advanced separate proposals, including a 10-year carry-forward for trading losses and an exit tax on crypto holdings exceeding €800,000 for those moving abroad.