France's new regulation requires reporting of self-custodied cryptocurrencies, privacy concerns spark heated debate in the community

[BitPush] France has recently taken a major step in cryptocurrency regulation. They passed an amendment called No. 1649 AC, which requires citizens holding crypto assets to proactively report the specific market value of coins in their wallets—note, even if you haven’t done anything, no buying, selling, or transferring, as long as you hold, you must report.

This move caused an immediate uproar. Many people directly criticized it, saying it’s essentially the government overreaching into private property. Even more concerning is that this means the authorities will create a database containing your name, address, and the amount and value of your holdings — critics say this is a “data honey pot,” and if leaked, the consequences could be disastrous.

Self-custody has always been one of the core principles of cryptocurrency, but now being forced to disclose everything publicly makes many privacy-conscious holders feel very uncomfortable. Whether other countries will follow suit with similar policies remains to be seen.