France Pushes for Stricter Stablecoin Limits and Self-Custody Reporting

French financial authorities are intensifying their oversight of the digital asset ecosystem, targeting both the issuance of stablecoins and the privacy of self-custodial holdings. The move signals a hardening stance as Europe seeks to balance innovation with monetary sovereignty. Denis Beau, First Deputy Governor of the Bank of France, recently urged the European Union to strengthen the Markets in Crypto-Assets (MiCA) regulation. Specifically, Beau called for restrictions on the use of stablecoins for payments, particularly those pegged to currencies other than the euro, arguing that current regulatory measures are insufficient to address the risks posed by non-European issuers. This push comes amid the overwhelming dominance of US dollar-pegged stablecoins, which currently account for 98% of the global stablecoin market. To counter this, the Bank of France is promoting the development of tokenized central bank money and private money as more secure alternatives for settlement infrastructure. In a parallel regulatory move, the French National Assembly has adopted a provision within an anti-fraud bill that would mandate the annual reporting of self-hosted crypto wallets. The requirement would apply to taxpayers whose assets in self-custody exceed a fair value of 5,000 euros. While the bill has not yet completed the full legislative process and faces some internal opposition regarding data security and enforcement, it represents a significant shift toward transparency for assets held outside regulated platforms. These developments are expected to be a primary topic of discussion at the upcoming Paris Blockchain Week, where President Emmanuel Macron is anticipated to deliver a special address.