French Crypto Backlash Erupts Over Proposed $112,000 Wallet Reporting Rule

French crypto backlash — French cryptocurrency users are threatening to “leave” the country in response to a legislative proposal that would require individuals to report self-custodied wallets holding more than €100,000 (approximately $112,000) to tax authorities.

The draft law, part of a broader anti-money laundering package, has ignited fierce opposition within the French crypto community. Critics argue the measure directly contradicts the privacy and security principles of decentralized finance, suggesting it could expose holders to targeted physical attacks.

Concerns have been amplified by a recent wave of “wrench attacks”—a term used for extortion through physical threats—reported in France. The community fears that a government registry of high-value wallets would create a lucrative target list for criminals, undermining personal security.

The proposal, if enacted, would mark one of Europe’s most aggressive steps toward tracing private crypto holdings. The backlash underscores a deepening conflict between state-driven financial surveillance and the core ethos of cryptographic asset ownership, potentially setting a precedent for other EU nations.