French lawmakers have moved to enforce stricter oversight on unhosted digital holdings, endorsing an amendment that establishes a €100K crypto wallet disclosure rule for individuals holding significant assets outside centralized intermediaries. Under the proposal, investors storing at least 100,000 euros in personal wallets would be compelled to disclose those balances to tax authorities or face financial penalties.

On October 9, 2026, the National Assembly Finance Committee approved a measure obligating people to report unhosted digital wallets meeting or exceeding that financial bar, according to Crypto Briefing. Crypto Briefing reported that regulated crypto service providers already carry reporting obligations, while self-custodied wallets have largely operated outside that framework until now.

The measure mandates that people submit annual reports if their personal unhosted balances stand at €100,000 when measured on December 31, Crypto Briefing reported. Crypto Briefing also noted that holders who skip the paperwork could face fines of up to €10,000.

According to KuCoin, the provision focuses on tokens kept away from regulated service entities, covering private software or hardware setups, and writes fresh reporting terms directly into French tax statutes. In legal terms, the text would add a provision to France's general tax code requiring disclosure based on how much the assets are worth as of December 31 and establishing fines of up to 10,000 euros for failure to declare.

Prior Attempts and Current Scope

This is not France's first attempt at wallet disclosure, according to Crypto Briefing. Crypto Briefing reported that an earlier initiative introduced during 2026 had sought a reporting bar of merely €5,000.

Crypto Briefing reported that the increased amount mirrors safety worries following physical assaults directed at domestic cryptocurrency owners. Placing the limit at €100,000 limits scrutiny to wealthier investors, though any government database of wealthy crypto holders becomes a potential target, a concern the higher threshold addresses only partially.

For most French crypto users, the immediate impact is limited, Crypto Briefing reported. The proposal is not law, and the €100,000 threshold excludes smaller holders entirely.

For larger self-custody holders, the calculus could change if the measure passes, according to Crypto Briefing. Direct ownership has attracted market participants because unhosted funds bypass documentation structures that govern centralized trading platforms, and a mandatory declaration would erode that distinction for anyone above the line.

The €100K Crypto Wallet Disclosure Mechanics

Under the measure advanced by parliamentarians, the €100K crypto wallet disclosure requirement mandates that citizens evaluate their personal holdings and report those meeting the value threshold. Those failing to fulfill the declaration could risk financial sanctions of up to €10,000, according to Crypto Briefing.

The amendment was introduced by deputies Charles de Courson, Jean-Pierre Bataille, and Michel Castellani, who all belong to the LIOT parliamentary group, both Crypto Briefing and KuCoin reported. KuCoin noted that the Finance Committee passed this text alongside four other digital asset provisions.

KuCoin reported that the amendment sponsors said it is meant to address tax evasion concerns, pointing to a parliamentary inquiry into the taxation of wealthy individuals. Crypto Briefing and KuCoin reported that the inquiry showed €3.5 billion in crypto capital gains in 2021, compared with only €400 million declared to tax authorities that same year.

That left roughly €3.1 billion unaccounted for on paper, and the amendment is designed to close part of that gap, Crypto Briefing reported. Once fiscal officers learn of a major personal address, taxpayers face far greater difficulty hiding profits originating from those balances.

Much of the debate around crypto taxation and compliance tends to focus on the transparency offered by intermediaries, according to KuCoin. The emphasis on assets held outside crypto-asset service providers suggests lawmakers see a compliance gap when individuals retain control directly through personal wallets, shifting the burden toward individuals to calculate the euro value of their holdings at year-end and file declarations.

Committee Rejection and Legislative Roadblocks

Despite committee approval, the legislative path for the €100K crypto wallet disclosure rule got messy within hours of the vote, according to Crypto Briefing. Later on October 9, the related budget revenue section was rejected by a vote of 31-3, Crypto Briefing reported.

Public broadcaster LCP reported that lawmakers rejected the revenue section of the 2027 budget bill by 31 votes to 3 after the committee's adoption, according to KuCoin. TOKENPOST also reported that the committee voted 31-3, with two abstentions, to reject the budget's entire revenue section after extensive revisions.

That revenue section now has to be reintroduced and voted on in the full National Assembly, Crypto Briefing reported. KuCoin and TOKENPOST reported that lawmakers are scheduled to begin debating the revenue section in the National Assembly on Tuesday, using the government's original draft as the starting point.

According to KuCoin, citing French tech publication Clubic, the crypto amendments would need to be submitted again and approved during parliamentary proceedings to become part of the final legislation. TOKENPOST similarly reported that the tax measures need to be reintroduced and approved in the full chamber to take effect.

The next marker to watch is October 13, 2026, when debate resumes in the full National Assembly, Crypto Briefing reported. Crypto Briefing also noted observers will watch whether the €100,000 figure holds through floor debate, or whether lawmakers push it back toward the lower number that failed in April.

Accompanying Exit Tax and Stablecoin Measures

The €100K crypto wallet disclosure measure also sits inside a wider package of proposed fiscal reforms aimed at digital assets, Crypto Briefing reported. Crypto Briefing noted that one measure would impose an exit tax on crypto holdings over €800,000 when individuals relocate abroad.

TOKENPOST reported that a second amendment would impose an exit tax on unrealized crypto gains when French tax residents relocate abroad. According to TOKENPOST, it would apply to households holding more than €800,000 in crypto assets across exchanges, overseas accounts, or self-custodied wallets, if the taxpayer had been a French tax resident for at least six of the previous 10 years.

A holder who dislikes the new disclosure rules might consider moving abroad, but if holdings exceed €800,000, the exit tax would make that move more expensive, Crypto Briefing reported. Meanwhile, KuCoin reported that Cointelegraph previously noted discussions on ending tax deferrals on conversions into fiat-backed stablecoins.

TOKENPOST reported that another approved amendment would treat the exchange of crypto assets for stablecoins covered by the European Union's Markets in Crypto-Assets framework as a taxable sale. That measure would apply to transactions beginning January 1, 2027, using the taxpayer's weighted-average acquisition cost to calculate gains, while another amendment would allow crypto losses to offset gains for up to 10 years instead of one year.

Conclusion

French legislators have advanced the €100K crypto wallet disclosure proposal through the Finance Committee to close an estimated €3.1 billion gap between realized and reported cryptocurrency gains. However, because the committee rejected the broader budget revenue section by a 31-3 vote, the mandatory reporting rules and accompanying exit taxes on holdings over €800,000 must now be reintroduced and debated on the floor of the National Assembly starting on October 13, 2026.

Frequently Asked Questions

What is the threshold for the €100K crypto wallet disclosure rule?

The amendment approved by the National Assembly Finance Committee targets self-custodied cryptocurrency holdings valued at €100,000 or more as of December 31, requiring owners of unhosted wallets above that level to submit annual declarations to tax authorities.

What penalties do individuals face for failing to report self-custodied wallets?

Under the proposed amendment backed by the committee, taxpayers who fail to disclose their self-custodied crypto assets valued at or above the €100,000 mark risk incurring financial fines of up to €10,000.

Why did the revenue section of the 2027 budget bill fail in committee?

Following the adoption of the crypto amendments, lawmakers on the Finance Committee voted 31 to 3, with two abstentions, to reject the overall revenue section of the 2027 budget bill after extensive revisions.

How does the proposed crypto exit tax work for French residents moving abroad?

TOKENPOST reported that the exit tax amendment would apply to unrealized cryptocurrency gains for households holding more than €800,000 in crypto across exchanges, offshore accounts, or self-custody, provided they were French tax residents for at least six of the previous 10 years.