French National Assembly Approves Amendment Requiring Mandatory Reporting for Self-Custodied Crypto Holdings Over €100,000

The French National Assembly has taken a significant step toward tightening regulatory oversight of digital assets by approving an amendment that would compel taxpayers to report self-custodied cryptocurrency holdings valued at least 100,000 euros, approximately $112,000, directly to tax authorities.

The legislative measure, designated as Amendment I-2701, was formally adopted on Tuesday following a decisive 150 to 44 vote in the lower house of the French parliament. According to the Assembly’s official voting record, the proposal also saw eight abstentions from lawmakers. Under the terms of the approved amendment, the specific 100,000-euro threshold would be assessed annually on December 31 of the relevant tax year, establishing a clear framework for monitoring large-scale private digital asset storage that bypasses centralized exchanges and traditional financial intermediaries.

While the measure targeting self-custodied wallets secured enough backing to pass this legislative hurdle, other crypto-related proposals faced a different fate during the ongoing parliamentary sessions. In a separate vote, the National Assembly decisively rejected an amendment that would have introduced a tax exemption for capital gains generated through cryptocurrency payments for goods and services. Under that defeated proposal, transactions totaling no more than 1,000 euros, or roughly $1,120, during a single tax year would have been shielded from taxation. However, the initiative was struck down in a 69 to 14 vote, according to official transcripts from the Assembly’s proceedings.

These competing digital asset proposals form an integral component of the broader 2027 Finance Bill currently navigating the French legislative system. For these provisions to officially become law, they must successfully survive the remainder of the legislative process and be retained in the final version of the legislation. The National Assembly is operating under a strict deadline, facing a November 17 cutoff to complete its initial reading of the comprehensive budget bill. Once the lower house concludes its review, the legislative battleground will shift to the upper house, with Senate debates officially scheduled to begin on November 20, as outlined in the parliamentary calendar.

Crypto measures await final budget approval

The path forward for France’s broader financial blueprint remains complex and uncertain. The National Assembly was forced to postpone Tuesday’s scheduled vote on the revenue section of the budget for the second time as lawmakers continued their intense, protracted debates over a myriad of proposed amendments. The vote on the revenue portion of the budget had originally been scheduled to take place much earlier, on October 20.

Although the postponement of the vote does not, in and of itself, introduce an immediate or fundamental shift in policy, experts note that the political climate surrounding the budget remains precarious. The likely rejection of the budget’s revenue section could ultimately result in the rejection of the entire bill in the National Assembly, including vital provisions that have already been adopted by way of individual amendments, according to Faustine Fleuret, the global head of public affairs at lending protocol Morpho.

The ongoing fiscal debates follow a series of high-stakes cryptocurrency policy decisions in the French parliament. Just days prior, on Friday, the Assembly rejected two distinct proposals that sought to apply exit taxes to unrealized cryptocurrency gains whenever taxpayers decided to transfer their tax residence abroad.

At the same time, lawmakers have shown a willingness to embrace stricter controls in other areas of the digital asset economy. On October 16, the National Assembly approved a separate amendment designed to tax gains resulting from converting cryptocurrencies into stablecoins. This particular proposal specifically targets stablecoins that are classified as electronic money tokens under existing European Union regulatory frameworks. Like the self-custody reporting requirement, this stablecoin conversion tax measure remains contingent upon being retained in the final, enacted version of the country’s financial legislation as it moves through the bicameral parliamentary system toward eventual final approval.