France Abandons €100,000 Crypto Reporting Rule for Self-Custody Holders

French crypto holders who manage their own keys received unexpected news as a proposed rule requiring them to report self-custodied holdings exceeding €100,000 has been eliminated from the 2027 budget. This decision came after the National Assembly rejected the entire revenue section of the finance bill, causing the amendment to fail.

Initially adopted on November 3, 2026, the amendment aimed to mandate French taxpayers to declare crypto assets held in wallets they control directly, including hardware and software wallets not provided by crypto-asset service providers. The reporting threshold was set at €100,000, with penalties for non-compliance potentially reaching €10,000.

However, the revenue section was voted down on November 4-5, 2026, with a decisive 458-0 vote against it. This rejection also led to the removal of other crypto-related measures, including proposals to tax certain crypto-to-stablecoin conversions and to enhance penalties on crypto platforms.

This is not the first attempt by France to increase visibility into self-custodied crypto. An earlier proposal with a lower reporting threshold of €5,000 was discarded in April 2026 due to verification challenges and industry pushback. The recent amendment's higher threshold was seen as an effort to target larger holders rather than those with modest amounts.

For now, French crypto holders can breathe a sigh of relief as there are no new annual declarations or fines imposed. However, the proposals could resurface in future parliamentary sessions, given the demonstrated interest in self-custody reporting within the Assembly.

The situation reflects ongoing tensions in European crypto policy, particularly as the EU's DAC8 directive aims to enforce reporting by crypto platforms starting in 2026, while self-custody remains outside that scope.