France Moves Forward with Crypto Disclosure Amendment 1649AC

France’s Amendment 1649AC would require citizens to declare market values of self-custodied cryptocurrencies even without taxable events, sparking privacy and data security concerns.

Summary

On December 12, France advanced Amendment 1649AC, mandating that residents report the exact market value of self-custodied cryptocurrencies, regardless of any taxable transactions occurring. This reporting obligation applies to digital assets held directly by the owner without intermediaries. Critics caution that the measure could compromise privacy, as it would create a centralized store of sensitive personal information and asset data, increasing risks of misuse or cyberattacks.

Terms & Concepts
  • Self-custodied cryptocurrencies: Digital assets stored and controlled directly by the owner without using third-party custodial services.
  • Amendment 1649AC: A legislative change in France requiring residents to report the market value of their self-held cryptocurrencies.