- French lawmakers advanced a proposal requiring crypto holders to report self-custody holdings equal to or above €100,000 ($112,000) or face fines up to €10,000 ($11,000).
- Critics argue the rule threatens personal security, citing a recent case where a French tax agent was accused of selling taxpayer data to criminals.
- The proposal follows a surge in crypto-related wrench attacks and kidnappings across France, including the 2025 kidnapping of Ledger co-founder David Balland.
- The amendment is not yet law and remains subject to change as the full National Assembly debates the budget.
French lawmakers on the Finance Committee adopted amendment I-CF821 Friday, requiring crypto holders to declare self-custody wallets exceeding €100,000 ($112,000) based on year-end value. Non-compliance would trigger fines up to €10,000 ($11,000).
However, industry figures have strongly objected. Harry Halpin, CEO of privacy infrastructure Nym, said the rule is a terrible idea because corrupt employees in the French tax authority have already shown themselves a danger to citizens. He referenced a tax agent accused of selling data to criminals.
Consequently, some crypto holders are sounding alarms. Rand Hindi, founder of privacy protocol Zama, tweeted that anyone living in France with crypto should leave or hire personal security. Mert Mumtaz, CEO of Solana infrastructure firm Helius, tweeted that France is the leading country for crypto kidnappings and wrench attacks, and the new rule would massively increase data collection and leakage.
France has become a hotspot for such crimes. In 2025, Ledger co-founder David Balland and his wife were kidnapped and held for ransom, with one of Balland’s fingers severed. Earlier this year, the wife of The Sandbox co-founder Sébastien Borget was the victim of an attempted kidnapping, and a couple in Versailles were forced to transfer $1 million in Bitcoin at knifepoint by robbers posing as police.
The amendment argues the rule is needed to fight crypto-enabled fraud, claiming ownership is underestimated. The committee also voted to treat crypto-to-stablecoin swaps as taxable sales from January 2027 and extend France’s exit tax to crypto holdings exceeding €800,000 ($896,000). Yet the committee later rejected the entire budget revenue section, meaning the full National Assembly will restart from the government’s original text without these crypto measures when floor debate resumes Monday.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
