France Considers Mandatory Reporting for Large Self-Custody Crypto Holdings

France Proposes Disclosure Rules for Self-Custodied Crypto

French lawmakers are debating a new tax amendment that could change how individuals report high-value digital asset holdings. Under the proposed measure, taxpayers would be required to declare self-custodied crypto holdings valued at 100,000 euros (approximately $112,000) or more to tax authorities.

The measure aims to increase visibility over private wallet holdings across the country. However, the proposal is still in the early stages and must successfully clear the national budget approval process before becoming law.

What Does Self-Custody Mean for Taxpayers?

To understand the proposed rule, it helps to clarify how self-custody differs from using standard cryptocurrency exchanges. Crypto holders generally keep their funds in one of two ways:

• Centralized Custody: Using a third-party platform or exchange to manage private keys on behalf of the user.
• Self-Custody: Holding private keys directly through personal software or physical hardware wallets without intermediaries.

Because self-custodied wallets operate without a central custodian sending automated transaction statements, tax authorities worldwide are seeking practical ways to ensure reporting compliance for significant private wealth.

Key Details of the Proposed Amendment

The draft amendment sets a specific financial threshold to focus primarily on high-value holdings. Here are the core details of the proposal:

• Reporting Threshold: Applies to self-custodied crypto worth €100,000 or more (around $112,000 USD).
• Target Group: French taxpayers managing larger digital asset portfolios in personal wallets.
• Current Status: The amendment remains subject to debate and revision within the ongoing national budget process.

Next Steps for the Proposal

It is important to emphasize that this requirement is not yet active law. The measure must survive legislative debates and formal votes during the budget process.

Lawmakers will continue discussing the technical feasibility and enforcement mechanics of the proposal. Taxpayers and industry observers will be following these developments closely to see if the threshold or reporting guidelines change prior to a final vote.