France Proposes Reporting Crypto Wallets Over $112K, Sparks Backlash

‘Leave’: Crypto Backlash Over French Proposal to Report Wallets Over $112K

A proposed change to France’s tax rules is drawing sharp criticism from some crypto holders after lawmakers backed an amendment that would require people to declare large crypto holdings kept in self-custody wallets.

The French National Assembly’s Finance Committee adopted an amendment on Friday—identified as I-CF821—that would add a provision to France’s general tax code requiring crypto users to report holdings equal to or above €100,000 (about $112,000), based on the value at the end of the calendar year.

The measure is not law and could still change as it moves through the legislative process.

The proposal focuses on assets held in self-custody wallets, where users control the private keys and therefore directly control the funds—unlike centralized exchanges or other custodial platforms, where a third party holds and manages the keys.

Under the proposed framework, individuals who fail to comply could face fines of up to €10,000 (about $11,000).

The amendment has sparked a backlash in parts of the crypto community, with some arguing that a reporting obligation tied to large self-custody holdings could create personal safety risks. Privacy protocol Zama founder Rand Hindi posted on X: “If you live in France and hold crypto, leave. If you can’t leave, hire personal security for you and your family.”

Security concerns have been heightened by a series of high-profile, in-person crypto robberies in France, often described in the industry as “wrench attacks,” where victims are physically threatened to force transfers.

The committee’s vote on I-CF821 was not the only crypto-related move it advanced last week. It also voted to:

• treat swaps from crypto into stablecoins as taxable sales starting January 2027, and
• extend France’s exit tax to crypto holdings for households worth more than €800,000.

Together, the measures reflect an effort to expand reporting and taxation around crypto ownership and transactions, while the public reaction underscores the tension between tax enforcement and the security and privacy concerns that come with linking individuals to sizable on-chain wealth.