French lawmakers back reporting rule for crypto wallets over $112K

French lawmakers have backed a proposal that would require holders of self-custodied crypto assets to report holdings equal or above 100,000 euros ($112,000) or face penalties. 

The amendment, numbered I-CF821, was adopted by the National Assembly’s Finance Committee on Friday, and would introduce reporting requirements for crypto that isn’t held by a crypto-asset service provider, including assets stored in personal wallets.

The amendment would add a provision to France’s general tax code. Under the proposal, holders would be required to disclose holdings based on their value as of Dec. 31, and could face fines up to 10,000 euros for failing to declare. 

The sponsors said the measure was intended to combat tax evasion, citing a parliamentary inquiry into the taxation of wealthy individuals, which found that crypto capital gains reached 3.5 billion euros in 2021, while only 400 million euros in crypto holdings were declared to tax authorities that year.

Proposal faces legislative hurdles

The amendment was introduced by Charles de Courson, Jean-Pierre Bataille and Michel Castellani, three members of France’s Liberties, Independents, Overseas and Territories (LIOT) parliamentary group. 

The wallet disclosure measure was among five crypto-related amendments adopted by the Finance Committee last week.