The French National Assembly has adopted a fiscal amendment that has sparked immediate controversy in the French crypto ecosystem. The text introduces a mandatory annual declaration for holders of self-hosted digital wallets (such as Ledger, MetaMask, Rabby) as soon as their value exceeds 5,000 euros. The measure is presented as a tool to combat tax fraud but is perceived by the sector as a major, both legal, operational, and symbolic rupture.
Specifically, this amendment complements Article 1649 AC bis of the General Tax Code by imposing on individuals holding self-custody digital assets, meaning without a regulated intermediary, to notify the tax authorities annually of the market value of their wallet. Hardware wallets like Ledger or software wallets like MetaMask are targeted, regardless of any sale or conversion into euros.
An Explicit Intention to Fill a Fiscal Blind Spot
The statement of reasons is clear. The legislator aims to extend the visibility of the administration beyond centralized platforms, already widely regulated through the declarative obligations of PSAN. The text is notably based on a report from the Court of Auditors published in 2023, which highlighted the lack of clarity of wallets held directly on the blockchain.
According to the authors of the amendment, this opacity makes self-hosted wallets a preferred tool for reducing the tax base. The notification obligation is therefore intended to integrate these assets into the scope of patrimonial surveillance to limit the risks of evasion and fraud.
A Concerning Regime of Exception for the Sector
For ecosystem actors, the measure sets a dangerous precedent. ADAN, through its general director Claire Balva, criticizes the establishment of generalized patrimonial surveillance that does not exist for any other asset held without an intermediary. Neither physical gold, nor artwork, nor jewelry are subject to a similar obligation in the absence of a sale.
This asymmetry fuels the perception of an exceptional regime applied to cryptocurrencies. Especially considering that French tax law is currently based on a clear principle: capital gains tax only occurs when converting into fiat currency or equivalent. Requiring an annual value declaration without a taxable event appears, to many, inconsistent and legally fragile.
Data Security and Feasibility in Question
Beyond principle, criticisms also address operational risks. Centralizing information regarding holders’ identities and the value of their digital assets poses an obvious security issue. Recent data leaks involving public agencies reinforce these concerns, especially in a context where crypto-related attacks and extortion attempts are on the rise.
As CoinAcademy reported this morning, in July 2025, a thirty-year-old official from the General Directorate of Public Finances was arrested and indicted for providing confidential information from tax databases to criminal networks. She was detained for charges including “criminal association,” “passive corruption,” and “breach of professional secrecy,” but the case primarily highlights that no data shared with the authorities is truly secure.
Finally, the measure is widely seen as unenforceable. The administration lacks the technical means to verify the existence of a self-hosted wallet or the declared valuation. Everything would rely on self-reporting, without a standardized methodology and without real control capacity.
A Debate Far from Over
Supported across party lines, the amendment is likely to survive the parliamentary process. However, its final adoption would trigger an explosive debate on its implementation and the balance between fiscal efficiency and respect for individual liberties.
For a significant part of the sector, this episode exemplifies an approach perceived as typically French: a complex tax maze, designed without a deep understanding of the relevant technologies, and carrying systemic risks for an ecosystem already under regulatory pressure. The clash between Web3 and the tax authorities is likely just beginning.
