France Proposes €100,000 Self-Custody Crypto Disclosure
French lawmakers have proposed requiring residents to report self-custody crypto holdings worth at least €100,000 on 31 December each year. The proposal, put forward by three LIOT deputies, would carry fines of up to €10,000 for non-compliance and applies to assets held outside crypto-asset service providers, such as in personal or hardware wallets. The self-custody wallet disclosure plan is intended to address an estimated tax gap: a parliamentary inquiry put crypto capital gains at €3.5 billion in 2021, compared with €400 million declared. An earlier proposal with a €5,000 threshold was rejected. The measure is not law; although the amendment was approved in committee, the budget revenue section was rejected, and parliamentary debate was due to resume on 13 October. Other proposed measures include an exit tax on crypto holdings above €800,000 for people moving abroad and ending tax deferrals on stablecoin conversions. If enacted, the self-custody crypto reporting rule would chiefly affect larger holders; its direct price impact remains uncertain.
Neutral
The proposal does not directly change the supply, utility or trading rules of any specific cryptocurrency, and it has not become law. In the short term, the committee approval and renewed debate may prompt uncertainty among French self-custody holders, but the news alone is unlikely to produce a broad, sustained price move. If enacted, disclosure requirements and possible fines could lead some affected holders to reassess custody or reduce activity in France, creating localized selling or shifting assets to regulated platforms. However, the €100,000 threshold limits the rule’s reach, and the proposal’s uncertain legislative path weakens its immediate market effect. Historically, tax and reporting proposals tend to influence sentiment and local participation more than global crypto prices unless they become binding or are accompanied by broader enforcement. Overall, the likely impact on cryptocurrency prices and market stability is neutral.