France Tightens the Screws on Stablecoins and Self-Custody: What It Means for Crypto Traders

French regulators are moving on dual fronts to clamp down on cryptocurrency activity—and the implications for the broader European crypto landscape are significant. We're watching two regulatory pushes that could reshape how traders operate across the EU.

Bank of France Demands Stricter MiCA Rules on Dollar Stablecoins

Denis Beau, First Deputy Governor of the Bank of France, just escalated the rhetoric around stablecoin regulation. Speaking at the EUROFI High Level Seminar in March (published on the Bank for International Settlements website Thursday), Beau explicitly called for tighter MiCA limits on non-euro stablecoins—specifically those pegged to the US dollar.

Here's the core issue: dollar-linked stablecoins dominate the market with 98% market share. That concentration bothers European policymakers. Beau stated plainly that the Bank of France has been "pressing for a strengthening" of MiCA to address this.

"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," Beau said in his remarks.

The Bank of France isn't just complaining—they're proposing solutions. Beau highlighted tokenized central bank money and private money initiatives as part of the answer, alongside stronger regulation. The bank has been tracking progress on settlement infrastructure projects like Pontes and Appia, but the message is clear: current measures aren't cutting it. This aligns with earlier warnings from Italy's central bank governor Fabio Panetta, who noted in 2025 that MiCA had limited impact on compliant stablecoin adoption. The digital euro, regulators believe, is the real tool to combat dollar stablecoin dominance.

France Advances Self-Custody Reporting Requirements

In a separate but equally significant move, France's National Assembly adopted an anti-fraud bill provision on April 7 requiring annual reporting of self-hosted crypto wallets above 5,000 euros. This is reporting-based crypto analysis at the tax administration level—meaning French taxpayers holding digital assets outside exchanges will need to disclose holdings annually.

The proposal hasn't cleared all legislative hurdles yet, but the direction is unmistakable. Gregory Raymond, founder of local crypto outlet The Big Whale, flagged that the measure faces pushback from certain lawmakers and parts of the government and tax administration who worry about enforcement feasibility and data security risks. Those concerns are legitimate—tracking decentralized self-custody wallets presents genuine operational challenges.