France's 112K Crypto Wallet Reporting Plan Sparks Backlash
France is considering a law that would require anyone holding a crypto wallet worth more than approximately 100,000 EUR (roughly 112,000 USD at current rates) to declare it to the tax authority. The proposal has ignited sharp pushback from the crypto community in France and beyond, with some holders openly stating they would rather leave the country than comply. For anyone trying to calculate crypto taxes or prepare a crypto tax report in France, this proposed rule adds a new and significant layer of complexity on top of the existing capital-gains regime.
What the Proposal Actually Says
The measure is a legislative amendment put forward in the French parliament. It targets self-custodied wallets and other crypto holdings above the 100,000 EUR threshold, requiring their disclosure to the French tax administration, the Direction Générale des Finances Publiques (DGFiP). The framing is anti-money-laundering and tax-transparency in nature, consistent with broader European efforts to tighten oversight of digital assets held outside regulated intermediaries.
The 100,000 EUR Threshold in Practice
The figure of 100,000 EUR is notable because it mirrors the threshold already used in France for undisclosed foreign bank accounts. Extending the same logic to crypto wallets signals that legislators view self-custodied crypto as functionally equivalent to an offshore account, at least from a transparency standpoint. The threshold applies to the total value of assets held in a wallet, not to any single transaction or realised gain. That means a holder whose Bitcoin or Ether holdings have appreciated well above that level, without any recent sale, would still trigger the obligation the moment the balance crosses the line.
Who Proposed It and Where It Stands
The amendment was tabled during parliamentary proceedings, placing it at an early stage in the French legislative process. It has not yet been passed into law. Budget and finance bills in France can be amended, rejected, or passed by the National Assembly and the Senate before they reach final enactment, so the proposal remains live but unconfirmed. That said, the political direction of travel, toward more crypto transparency, is consistent with France's existing trajectory and with European Union-level initiatives such as DAC8, which extends automatic information exchange to crypto assets across member states.
Why the Backlash Has Been So Strong
Reactions online and in crypto forums have ranged from anger to resignation, with a striking number of French holders saying they'd consider relocating to a more crypto-friendly jurisdiction. The word "leave" has circulated widely as a response to the news, pointing to a genuine concern that aggressive disclosure requirements could push self-sovereign crypto holders out of France entirely.
Privacy and Self-Custody Concerns
For many in the crypto community, self-custody is more than a technical choice. It's a principled stance on financial autonomy. A mandatory disclosure rule strikes directly at that, requiring holders to hand the government a map of their on-chain wealth, including wallet addresses, before any taxable event has even occurred. Critics argue that this conflates transparency with surveillance, and that it penalises responsible, law-abiding holders who simply prefer not to use a centralised exchange.
The Threat of Capital Flight
The relocation threat isn't purely rhetorical. France has experienced notable outflows of high-net-worth individuals before under perceived punitive tax regimes. Whether crypto holders follow through is uncertain, but the risk is real enough that it tends to feature in French policy debates. Countries with lighter-touch crypto frameworks, including Portugal and certain non-EU jurisdictions, are frequently cited as alternatives by those expressing intent to leave.
The Tax and Reporting Overlap
France already taxes crypto gains. Individuals pay a flat 30 percent levy (the Prélèvement Forfaitaire Unique, or PFU) on net realised gains from the disposal of digital assets, though they can opt for the progressive income tax scale if that produces a lower bill. Gains are calculated on the basis of the total portfolio value at the time of each disposal, using a specific averaging method that requires you to track your entire acquisition cost across all wallets and exchanges.
How a Disclosure Rule Stacks on Top
If the wallet-reporting proposal passes, French holders would face two separate but interacting obligations. First, the existing requirement to declare any taxable disposals on their annual income tax return (Formulaire 2086 for crypto gains). Second, a new requirement to disclose the existence and value of wallets above the 100,000 EUR mark, regardless of whether any sale occurred. These two obligations would use overlapping but not identical information. The tax return needs gain-and-loss detail; the wallet disclosure needs current valuations and wallet identifiers. Keeping these records separately but consistently is non-trivial, and gaps between them are exactly what a DGFiP audit would probe.
Unrealised Gains and the Valuation Challenge
One practical difficulty is that the threshold is based on current wallet value, not on cost basis or realised profit. A holder who bought Bitcoin years ago for 20,000 EUR and whose holdings are now worth 150,000 EUR has never sold anything and owes no tax today, but would be caught by the proposed disclosure rule. Calculating that current value accurately, especially across multiple wallets holding different assets including tokens, NFTs, and DeFi positions, requires the kind of systematic record-keeping that a good crypto tax calculator makes far easier. Doing it manually is error-prone and time-consuming.
What This Means If You're a French Crypto Holder
Even though the proposal hasn't become law yet, acting now puts you in a much better position than scrambling after enactment. Here's where to focus.
Get Your Wallet Inventory in Order
Start by listing every wallet and exchange account you control, including hardware wallets, software wallets, and any DeFi protocols where you hold assets. For each one, record the asset type, quantity, and approximate current value in EUR. This is the raw material both for any future disclosure and for your annual crypto tax report. If you've never done this before, it also tends to surface transactions you'd forgotten about, which is critical for accurate gain calculations.
Check Whether You're Already Above the Threshold
Add up the current EUR value across all your wallets. If the total is close to or above 100,000 EUR, you're in the zone where this proposal would apply. Even if it's slightly below today, price movements could push you over before any legislation takes effect. Building the habit of quarterly valuation snapshots now means you won't be caught unprepared.
Review Your Gains Position Before Year End
France's existing PFU applies to realised gains in the calendar year. If you've made disposals in 2026, those go on your 2027 tax return. Using a crypto tax calculator that applies the French averaging method, rather than a generic FIFO or LIFO approach, will give you the most accurate gain figure. A crypto tax report produced from clean, complete data is your best defence in any future audit, whether triggered by a wallet disclosure or otherwise.
For more context on how this proposal relates to earlier French reporting moves, see our coverage of France's earlier crypto wallet disclosure proposal and the related France's proposed stablecoin swap tax and exit tax.
The Broader European Context
France isn't acting in isolation. The EU's DAC8 directive requires member states to implement automatic exchange of information on crypto assets held at regulated intermediaries from 2026 onward. What makes the French proposal different, and more contentious, is that it reaches into self-custodied wallets, which DAC8 does not directly cover. If France passes this measure, it would be among the first EU member states to extend mandatory disclosure to non-custodial holdings, potentially setting a precedent that other jurisdictions watch closely.
The Markets in Crypto-Assets Regulation (MiCA), now in full effect across the EU, already imposes significant obligations on crypto-asset service providers. But MiCA, like DAC8, operates at the intermediary level. France's proposed rule is aimed squarely at the individual holder. That distinction matters enormously for anyone who has deliberately chosen self-custody as a way of keeping assets outside a regulated platform's reporting pipeline.
Frequently Asked Questions
Is the 100,000 EUR crypto wallet disclosure already law in France?
No. As of the article date, it is a legislative amendment under parliamentary consideration. It has not been passed or signed into law. The situation can change quickly during budget season, so monitoring official communications from the DGFiP and the French parliament is advisable.
Does the threshold apply per wallet or across all my wallets combined?
Based on the framing of the proposal, the threshold appears to apply to wallet holdings broadly, similar to how the existing foreign-account disclosure rules treat aggregate balances. The precise wording, once finalised, will determine whether it's per wallet or aggregate. Either way, holders near the threshold should track both figures.
I haven't sold any crypto this year. Do I still have to worry about this?
Under France's existing rules, no taxable event means no gain to declare on your income tax return. But the proposed wallet disclosure is separate: it's triggered by current value, not by a sale. So yes, if your holdings are worth more than roughly 100,000 EUR, you could have a disclosure obligation even with zero taxable gains. This is one reason the crypto community is pushing back so hard.
How do I calculate the EUR value of my crypto holdings for disclosure purposes?
You'd typically use the market price on the relevant reference date, converted to EUR. For complex portfolios spanning multiple assets and wallets, a crypto tax calculator that aggregates balances and applies live or historical exchange rates makes this considerably less painful than doing it manually. The key is consistency: use the same pricing source and the same reference date across all positions.
Could this proposal affect how I file crypto taxes for 2026?
Your 2026 gain-and-loss reporting obligations under the PFU are unchanged by this proposal; the existing rules still apply. What would change, if the amendment passes, is an additional disclosure form for wallets above the threshold. The two obligations use overlapping data, so the most efficient approach is to maintain a single, comprehensive record of all your holdings and transactions and use that to populate both filings. Getting your crypto tax report structured correctly from the start saves a lot of rework later.
Source: Decrypt