Mandatory Declaration of Crypto Portfolios Over €100,000 Adopted by the Finance Committee

The Finance Committee of the National Assembly approved amendment I‑CF821 on Friday, mandating the declaration of self-custodied crypto assets worth €100,000 or more (approximately $112,000). The measure applies to assets held in personal wallets, excluding any third-party crypto service providers. Failure to declare could result in a fine of up to €10,000. The initiative was led by deputies Charles de Courson, Jean‑Pierre Bataille, and Michel Castellani, members of the LIOT group (CoinTelegraph).

Mandatory Declaration of Crypto Portfolios Over €100,000 Adopted by the Finance Committee

According to the text, holders must declare their assets by December 31st each year, based on the market value at that date. The measure modifies the general tax code by adding a new declaration category specifically for undeclared crypto assets. The proposed fine of €10,000 aims to deter taxpayers from hiding their positions. The decision was unanimous, marking a major legislative milestone (CoinTelegraph).

The same committee highlighted that the primary goal is to combat tax evasion, relying on findings from a parliamentary investigation into the taxation of high-net-worth individuals. The investigation revealed that crypto gains totaled €3.5 billion in 2021, while only €400 million in crypto assets were declared to fiscal authorities, leaving a gap of over €3.1 billion (CoinTelegraph).

The measure specifically targets self-custodied assets, excluding third-party providers

The amendment specifies that the declaration applies only to crypto assets directly held by taxpayers, i.e., in personal hardware or software wallets. Assets held with a crypto asset service provider remain subject to existing declaration obligations for financial institutions. By integrating this provision into the tax code, lawmakers create a distinct category, facilitating fiscal oversight of off-exchange transactions. This technical distinction was explicitly outlined by the amendment's authors (CoinTelegraph).

During the same session, the Finance Committee adopted four other amendments related to crypto assets, including one imposing an "exit tax" of €800,000 for taxpayers transferring their assets abroad and another measure ending tax deferrals on conversions to fiat-backed stablecoins. These proposals demonstrate the French legislature's intent to cover the full fiscal spectrum of crypto assets, from individual wallets to cross-border operations (CoinTelegraph).

Maximum fine of €10,000 for omissions: a tool in the fight against tax evasion

The proposed fine of up to €10,000 fits into the broader context of combating fiscal fraud, drawing on findings from the parliamentary investigation. The fine amount was set to be proportional to the €3.1 billion gap between declared gains (€3.5 billion) and actually declared assets (€400 million) in 2021. This proportionality aims to make non-declaration financially dissuasive (CoinTelegraph).

Practically, the tax authority can verify declarations using information from exchanges, wallet providers, and bank statements. Taxpayers must therefore justify the value of their assets as of December 31st, or risk receiving a compliance notice followed by the proposed fine. This approach strengthens the state's ability to close the fiscal revenue gap linked to crypto assets, estimated at several billion euros last year (CoinTelegraph).

The text still needs to pass the 2027 budgetary stage

While the Finance Committee adopted the amendment, it remains subject to examination in the broader 2027 budget bill. During the same session, the committee rejected the revenue section of the finance bill with a vote of 31 against 3, indicating significant opposition to the proposed tax measures. A debate on the revenue section is scheduled for the following Tuesday, opening the possibility of re-submitting crypto-related amendments before the final plenary vote (CoinTelegraph).

Proponents emphasize that integrating the amendment into the budget is essential to ensure fiscal consistency and avoid government policy inconsistencies. Critics, however, fear that the additional administrative burden could discourage innovation in the crypto sector. The text will therefore need to be reviewed, possibly adjusted, and then submitted for approval by the National Assembly before becoming law (CoinTelegraph).

Consequences for French taxpayers and crypto asset taxation

For French holders, the new framework requires annual valuation of self-custodied portfolios, with the obligation to provide market price justifications as of December 31st. This obligation could lead to compliance costs, such as auditing or third-party evaluation services. Taxpayers may therefore be encouraged to use service providers that already offer integrated tax reporting to simplify declarations (CoinTelegraph).

Additionally, the declaration requirement could influence holding behavior. Some investors might choose to transfer their assets to exchanges or custodians to benefit from automated declarations, while others might reduce their positions to avoid administrative burdens. The investor tax guide from TradeXora already details best practices for declaring crypto assets, which is likely to become an indispensable reference for French taxpayers facing this new rule (CoinTelegraph).

Perspectives on implementation and legislative follow-up

The legislative calendar provides for the text to be re-examined during upcoming budgetary debates, followed by a final vote in the Assembly. If adopted, the tax authority will announce a compliance deadline, likely starting January 1, 2028, to allow taxpayers time to prepare their declarations. Authorities will also publish explanatory notices on market value calculation methods to avoid interpretation discrepancies (CoinTelegraph).

Observers of the sector, including tax law firms and crypto consulting agencies, closely monitor the text's evolution, as it could serve as a model for other European jurisdictions. The application of the measure's follow-up will be crucial to assess its real impact on fiscal revenues and market transparency in France. TradeXora will continue to cover legislative developments and their implications for French investors (CoinTelegraph).