France Proposes Mandatory Reporting for Crypto Wallets Above €100,000, Sparks Security Backlash

France moves to require disclosure of large crypto holdings

The French National Assembly's Finance Committee voted to adopt an amendment (I-CF821) on Friday that would require individuals holding crypto assets valued at €100,000 ($112,000) or more in a self-custody wallet to report those holdings to tax authorities. A self-custody wallet is a digital wallet where the owner personally holds the private keys, giving them full control over the assets, unlike centralized exchanges that hold funds on their behalf.

Those who fail to comply could face fines of up to €10,000 ($11,000). The proposal would add a new provision to France's general tax code, requiring declarations based on the value of crypto holdings at the end of each calendar year.

Key points from the proposal

• The reporting threshold is €100,000 (roughly $112,000) at the end of each calendar year.
• Non-compliance could result in fines of up to €10,000 ($11,000).
• The rule applies specifically to crypto held in self-custody wallets, not those on centralized exchanges.
• The stated goal is to combat fraud and address what lawmakers describe as underreported crypto ownership.
• The proposal is not law yet and remains subject to change.

Backlash centers on security concerns

Crypto industry figures voiced strong opposition, arguing the rule could put personal safety at risk. Harry Halpin, CEO of privacy infrastructure company Nym, called the proposal a terrible idea, pointing to a recent case in which a French tax agent was accused of selling taxpayer data to criminals.

"This is a terrible idea as corrupt employees in the French tax authority have already shown themselves to be a danger to their own citizens," Halpin told Decrypt.

Rand Hindi, founder of privacy protocol Zama, warned on social media that people living in France with crypto holdings should consider leaving the country or hiring personal security.

Mert Mumtaz, CEO of Solana infrastructure firm Helius, described France as the leading country for crypto kidnappings and wrench attacks, and warned that expanding data collection by the government would increase the risk of leaks.

Crypto robberies fuel fears behind the backlash

Several high-profile in-person crypto crimes have taken place in France in recent years, which crypto participants cite as a major reason they feel uneasy about disclosing their holdings.

In 2025, Ledger co-founder David Balland and his wife were kidnapped at home in what is known as a wrench attack, where one of Balland's fingers was severed by the attackers. Earlier in 2026, the wife of The Sandbox co-founder Sébastien Borget was the target of an attempted kidnapping at her home in Villenoy, Seine-et-Marne. Also earlier this year, a couple in their late 50s were forced at knifepoint to transfer $1 million in Bitcoin by robbers posing as police in Versailles.

What the committee also voted on

The Finance Committee approved additional crypto-related measures during the same session. It voted to treat swaps from crypto into stablecoins (a type of crypto designed to hold a stable value, usually pegged to a fiat currency) as taxable sales beginning January 2027. It also voted to extend France's exit tax to crypto assets held by households worth more than €800,000.

The path ahead remains uncertain

Despite the committee's approvals, the entire revenue section of the budget was rejected by a vote of 31 to 3. As a result, the full National Assembly will begin floor debate from the government's original text, which does not include any of the crypto amendments. For the measures to move forward, lawmakers will need to introduce them again.

Floor debate is scheduled to resume on Monday.

Sources

• Decrypt