Key Takeaways:
French officials are advancing a two-pronged push for tighter cryptocurrency oversight, targeting both the dominance of non-euro stablecoins and assets held in private wallets. The moves signal a hardening regulatory environment in one of Europe's key financial markets ahead of the full implementation of the Markets in Crypto-Assets (MiCA) regulation.
"MiCA only partially addresses the risks posed by changes in the sector, particularly in the event of widespread adoption of stablecoins issued by non-European players," Denis Beau, First Deputy Governor of the Bank of France, said in a speech published Thursday.
The Bank of France is actively "pressing for a strengthening" of MiCA to rein in the use of stablecoins for payments, especially those pegged to the U.S. dollar which account for 98 percent of the stablecoin market. Separately, France’s National Assembly on April 7 adopted a provision in an anti-fraud bill that would compel taxpayers to report self-hosted crypto wallets to the tax authority annually if their value exceeds a €5,000 threshold.
These proposals could significantly alter the landscape for crypto users and providers in Europe. Stricter limits on dollar-denominated stablecoins could fragment liquidity and disrupt DeFi activity, while mandatory reporting for self-custody wallets raises privacy concerns and increases the compliance burden on individuals, potentially setting a precedent for other EU nations.
In his speech, delivered in March at the EUROFI High Level Seminar, Beau stressed that existing measures might be insufficient to counter the dominance of U.S. dollar-pegged stablecoins. This echoes concerns from other European officials, including Bank of Italy Governor Fabio Panetta, who in 2025 pointed to the digital euro as a more effective tool for controlling crypto risks than MiCA alone. The Bank of France's call to action suggests a desire to amend or augment MiCA to specifically protect the monetary sovereignty of the euro.
The provision passed by the National Assembly targets assets held outside of regulated exchanges and custodians. While the bill has not yet completed the full legislative process, its adoption marks a significant step toward greater tax transparency. According to Gregory Raymond, founder of the local outlet The Big Whale, the proposal has faced opposition from some lawmakers and government bodies over concerns about enforcement challenges and data security risks for wallet holders. The developments come just before the Paris Blockchain Week, where President Emmanuel Macron is expected to speak, highlighting the growing importance of the digital asset sector in France.
This article is for informational purposes only and does not constitute investment advice.
