French National Assembly Approves Amendment Requiring Disclosure of Self-Custodied Crypto Assets Above €100,000
The French National Assembly has approved an amendment that will require taxpayers to declare self-custodied crypto assets valued at over €100,000. The amendment, designated I-2701, passed with 150 votes in favor, 44 against, and 8 abstentions. The threshold for valuation will be based on the asset’s value as of December 31st of the relevant tax year.
In the same session, lawmakers rejected another proposed amendment that would have exempted profits from cryptocurrency payments for goods or services, up to €1,000 within a single tax year, from taxation. This proposal was defeated with 69 votes against and 14 in favor.
The new reporting requirement is part of the 2027 Finance Bill and must be retained in the final legislation to take effect. The National Assembly is scheduled to complete its first reading of the bill by November 17th, with the Senate set to begin its deliberations on November 20th.
A more significant variable remains the overall progression of the bill through the legislative process. The National Assembly postponed a vote on the bill’s “revenue section” for the second time on Tuesday, a vote originally scheduled for October 20th. While the postponement itself may not signify a definitive outcome, Faustine Fleuret, Head of Global Public Affairs at lending protocol Morpho, noted that if the revenue section is “very likely to be rejected,” it could lead to the entire bill being voted down in the National Assembly, consequently invalidating provisions that passed as amendments.
Prior to these developments, the Assembly rejected two proposals last Friday that would have imposed an “exit tax” on unrealized crypto gains for taxpayers relocating their tax residency overseas. On October 16th, the Assembly approved an amendment to tax profits from cryptocurrency conversions into stablecoins, including those classified as electronic money tokens (EMTs) under EU regulations. This provision also requires retention in the final bill.
The French Senate had previously approved a bill for the automatic exchange of crypto tax data between government agencies. Viewed chronologically, France is simultaneously tightening its approach to crypto asset tax disclosure through two avenues: one focusing on the reporting obligations for individuals holding their own assets, and the other on data exchange between authorities.
On a broader scale, France’s move is not an isolated incident. The EU’s DAC8 directive has adopted the OECD’s Crypto-Asset Reporting Framework (CARF), mandating the automatic exchange of crypto asset holding and transaction data among member states. Australia has also incorporated this framework into its draft legislation, with cross-border tax data exchange expected to commence in 2028. By including the €100,000 self-custody threshold in its finance bill, France is establishing a domestic disclosure obligation for direct individual holdings, supplementing the existing EU framework.
In essence, this amendment does not introduce new taxes but rather establishes a verifiable point for reporting. The provisions that are more likely to increase the financial burden on French crypto holders are the tax on crypto-to-stablecoin conversions, approved on October 16th, and the ongoing discussions surrounding the exit tax. Two key points to watch are whether I-2701 and the revenue section will pass the Senate’s review starting November 20th, and whether the €100,000 threshold will be adjusted during the bicameral negotiations. If the revenue section is ultimately rejected, the crypto-related provisions passed as amendments may be discarded along with it, requiring the entire issue to be revisited in the next budget cycle.
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