- France proposed mandatory reporting for crypto self-custody wallets over €100,000.
- Critics argue that a list of wealthy crypto holders increases theft and extortion risks.
- In 2026, France saw 77 kidnappings so far tied to crypto as violent crime spiked.
The French government proposed a law that would make crypto holders report any self-custody wallet holding €100,000 ($112,000) or more. This sparked backlash from people in the crypto world, who warn that collecting this kind of sensitive financial info could put investors at risk.
France’s National Assembly Finance Committee passed the amendment while debating the country’s 2027 budget. Under the proposal, holdings would be valued on December 31 of that year, and failing to report could cost up to €10,000.
If passed, the law would target crypto held directly in self-custody, and not assets kept with an exchange or other crypto platform.
Backers say this would help tax agencies spot unreported crypto and crack down on fraud. The amendment points to a parliamentary inquiry that suggests crypto holdings and gains have been underreported.
The main premise is that tax authorities need a better view of assets that can be held outside regular banks.
Immediate Backslash
It didn’t take long for critics to argue that building a list of wealthy crypto holders could put them at greater risk of theft, extortion, or even physical attacks if that data ever leaked or fell into criminal hands.
Zama founder Rand Hindi criticized the French government, saying on X that French crypto holders should consider leaving the country or hiring personal security.
Mert Mumtaz, CEO of Helius, spoke against the proposal, pointing out that collecting this much personal data is dangerous, especially since a recent leak at the French tax office already exposed the personal records of hundreds of thousands of taxpayers.
Similarly, Nym CEO Harry Halpin warned about the danger of sensitive tax information falling into the wrong hands.
These concerns come as France sees a wave of violent crimes aimed at crypto investors. A parliamentary question from September cited 77 crypto-related kidnappings and unlawful detentions logged by the gendarmerie since the beginning of 2026. Still, it’s worth noting that this proposal is not yet close to becoming final law.
Because the Finance Committee rejected the revenue section of the overall 2027 budget plan, these specific tax changes won’t automatically move forward to the full National Assembly for a vote. For the proposal to stay alive, lawmakers will have to submit it again as a fresh amendment.
Related: France’s Crypto-Linked Kidnappings and Attacks Continue as New Cases Emerge in 2026
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