France Advances Law Mandating Self Custody Funds’ Disclosure
Key Takeaways:
Deputy Daniel Labaronne opposed the inclusion of this article in the law, arguing it would be impossible for the DGFIP to ascertain the ownership of these assets. “Likewise, how could it verify whether an individual owns a piano in their home?” he asked. Nonetheless, the motion to suppress the article was defeated.
The measure, framed as another move to fight tax fraud, was taken against the DGFIP and the French government recommendation, as the agency acknowledged that it had no tools to verify the data provided by contributors.
The DGFIP warned about the effects of such a measure on the security of French citizens, as the country is a hotbed for wrench attacks targeting crypto holders. In an email, the agency stated:
“It should be noted that a generalized declaration of these portfolios would lead to the centralization of highly sensitive data, such as the identities of the holders and the value of their assets.”
In this regard, it was ratified that “in a context of frequent cyberattacks against large databases, this information would become a prime target for hackers, entailing heightened risks of fraud.”
If finally passed, all funds held in wallets like Metamask, Phantom, and even in hardware devices like Ledger wallets will have to be disclosed by crypto holders. Nonetheless, Raymond stressed that the measure has a low chance of passing as is, as the government is hostile to it.
About Author
