French lawmakers have moved forward with a proposal requiring cryptocurrency holders to declare digital asset holdings of €100,000 ($112,000) or more to authorities. Individuals who do not comply could face fines reaching €10,000 ($11,000).
Controversy over security and privacy risks
This proposed regulation has sparked significant concern among members of France’s crypto community. Many fear that reporting large crypto holdings could increase personal security risks, especially following a series of violent crimes targeting cryptocurrency owners in the country.
Several high-profile incidents have occurred in recent years, including kidnappings, robberies, and so-called “wrench attacks” where physical force is used to coerce victims into surrendering their digital assets. In January 2025, attackers kidnapped Ledger co-founder David Balland and his wife from their home, reportedly severing one of Balland’s fingers during the ordeal. Earlier this year, Sébastien Borget’s wife, connected to The Sandbox project, was targeted in an attempted kidnapping. Another case involved a couple in Versailles being forced at knifepoint to transfer $1 million in Bitcoin by individuals posing as police officers.
Industry figures have voiced their alarm at the proposal. Mert Mumtaz, CEO of Solana-based infrastructure company Helius, described France as “the leading country on the planet for crypto kidnappings and wrench attacks,” adding that expanded reporting requirements could lead to significantly more personal information being exposed and potentially leaked.
France is the leading country on the planet for crypto kidnappings and wrench attacks. Now they want to increase by 50,000x the amount of data they collect and hence leak.
Other crypto advocates, such as privacy researcher Halpin, have suggested that criminals may exploit blockchain analytics and AI surveillance tools. Halpin recommends that individuals use shielded cryptocurrencies like Zcash and secure VPNs to better protect their privacy.
Mini dictionary: Wrench attack — A term describing physical attacks on individuals with the aim of coercing access to digital assets, usually by threatening or inflicting harm to the victim.
Reporting, self-custody wallets, and tax implications
The amendment, adopted by France’s National Assembly Finance Committee, would require individuals to report crypto assets held in self-custody wallets. A self-custody wallet allows the user to control their private keys and, by extension, their digital assets, distinguishing it from custodial wallets provided by exchanges or platforms.
Under the proposal, any individual with crypto assets totaling €100,000 or more at the end of the calendar year would need to disclose their holdings to tax authorities. The measure is designed to address what lawmakers describe as a persistent underreporting of crypto ownership and to strengthen efforts against fraud.
| Provision | Current status | Penalty |
|---|---|---|
| Mandatory reporting above €100,000 | Proposed (not law yet) | Up to €10,000 fine |
| Taxable swaps of crypto to stablecoins | Approved by committee, not final | Effective January 2027 (if passed) |
| Exit tax extension to crypto for households > €800,000 | Approved by committee, not final | N/A |
Despite these moves, the committee later rejected the budget’s entire revenue section, voting 31 to 3 against it. As a result, the National Assembly will resume debate based on the original government text, which does not include any of the cryptocurrency amendments. Lawmakers will need to reintroduce these provisions if they want to pursue them further.
Heightened awareness after spate of violent attacks
The recent surge in violent crimes connected to cryptocurrency in France has heightened concerns around new regulatory requirements. In addition to the Ledger and Sandbox-related incidents, French authorities have reported several other kidnappings and robberies linked to digital asset ownership.
Authorities have made progress in investigating these crimes. For example, Spanish police recently arrested an individual believed to be the final fugitive involved in the January 2025 kidnapping of Ledger’s Balland. French police have now apprehended all known suspects from the case, which attracted international attention due to its brutality and scale.
Many in France’s crypto sector argue that the threat of physical violence should be a central consideration in any debate about mandatory asset disclosure. They warn that disclosure requirements could inadvertently make high-value holders more vulnerable to targeting.
The only solution to defend your data and cryptocurrency is to use shielded cryptocurrency like Zcash and actually private VPNs, Halpin suggested, warning that future criminals could leverage chain analytics and AI surveillance.
It remains uncertain whether the proposed crypto reporting amendments will be reintroduced during the ongoing budget debates in the French National Assembly. For now, none of the new measures have taken effect, and negotiations continue.
