France Says 'Bonjour' to Your Private Keys: Self-Hosted Wallets Now Need a Government Hello

France is moving forward with legislation that would require cryptocurrency owners to declare their self-hosted wallets to tax authorities. The bill, which passed the National Assembly on first reading this week, introduces a new reporting obligation for wallets holding €5,000 (approximately $5,900) or more in digital assets.

The measure is designed to increase transparency in digital financial flows, which have proven harder to trace than traditional bank transfers. The government hopes to tap into wealth that has largely escaped detection until now.

French tax authorities had a successful 2025, collecting over €17 billion in taxes and penalties through improved monitoring of citizens' assets. The new legislation would add crypto to the agency's surveillance toolkit.

After clearing the National Assembly, the bill must still pass the Senate and receive approval from a joint committee, possibly in May. Implementation would follow the introduction of detailed bylaws, placing the actual reporting requirement likely at the end of this year or early 2027.

The move is part of a broader tightening of tax enforcement. AI-powered audits proved particularly effective last year, with a 148% increase in tax credit refund audit results. Those failing to declare their wallets could face sanctions comparable to those for undeclared work or unreported foreign bank accounts.

France is not alone. Other jurisdictions are similarly increasing pressure on crypto owners to disclose holdings to state authorities.