France Drops Self-Custody Crypto Reporting Rule
France’s National Assembly has dropped a proposed self-custody crypto reporting rule from the 2027 budget after rejecting the bill’s entire revenue section. The amendment had passed on 3 November by 150 votes to 44, with eight abstentions. It would have required taxpayers to declare self-custodied crypto worth more than €100,000 on 31 December each year, with fines of up to €10,000 for failing to report. The Assembly rejected the revenue section on 4–5 November by 458 votes to none, with two abstentions, removing the self-custody crypto reporting rule alongside proposals on crypto-to-stablecoin taxes and stricter penalties for crypto platforms. The rule was dropped for procedural reasons, not after a separate vote on its merits. French holders therefore face no new annual declaration requirement for now, although lawmakers could revive the proposal. The debate comes as EU DAC8 rules are due to require crypto platforms to report customer information from 2026, while self-custodied assets remain outside that framework.
Neutral
The decision is unlikely to have a material direct effect on the price of any specific cryptocurrency. In the short term, the removal of the proposed rule may ease concerns among French self-custody holders about additional reporting obligations, but the measure was dropped for procedural reasons rather than rejected on its merits. That limits the strength of the regulatory signal and makes a sustained price response less likely. In the longer term, the possibility that lawmakers could revive the proposal, alongside DAC8 reporting requirements for platforms from 2026, keeps regulatory uncertainty relevant. Traders may monitor policy developments and related market sentiment, but the news alone does not change crypto supply, demand or trading access in a way that points clearly bullish or bearish.