4.85 Million French Crypto Holders Allegedly Fail to Declare Assets as Government Targets Offenders

Only a handful of French cryptocurrency holders have declared their coins to the state, claimed a report, as the government sets to take action.

This aligns with the publication by the French IT magazine Clubic, which suggests that action is set to be taken by the Ministry of Public Action and Accounts, and in fact, by all tax bodies in the country. They have been galvanized into action after just 150,000 French residents declared their cryptoassets at the end of the last financial year.

French Crypto Holders 'Under-declare' Holdings

In estimates given, some 5 million French people hold cryptoassets, including Bitcoin (BTC), according to the European Central Bank (ECB). The outlet said that tax officials "suspect many taxpayers of 'under-declaring their assets.'" The ministry will have new legislation ready for a response. It is working in conjunction with the Ministry of Economy of the country. This new legislation "will contain a 'large arsenal of measures.'" Forces believe that these measures will "toe to the government's line," ministry officials say.

The ministry confirmed the legislation will be combined with a range of other anti-fraud rules. The media outlet stated that these would come as a "rude awakening" for French "cryptocurrency enthusiasts."

80% Fines Await French Crypto Holders Who Fail to Declare

Failing to declare cryptocurrency holdings on tax returns in France leads to fines that can reach up to 40% of the coins' total worth. In the case of professional crypto traders who fail to declare their coins, this can double to a staggering 80%.

The new proposals "could be discussed in the coming weeks" by lawmakers and senators. The bill could see the light of day before the end of fall 2024, provided it faces no opposition in parliament. The ministry claims that by the time fall sets in for FY2024, the new rules could be in place.

New Powers on Their Way?

The Ministry of Public Accounts also wants to grant new powers to the tax body regarding citizens' overseas assets and holdings. This would allow tax officials to chase French crypto holders who might hide their tokens in overseas wallets and crypto exchange platforms.

According to a survey carried out by a reputable French media outlet in March, 15% of people aged 18-24 have bought crypto. The same outlet noted that 9% of the French public have bought crypto at some point in their lives.