France Moves to Curb Dollar-Pegged Stablecoins and Private Crypto Wallets Under MiCA

French regulators are requiring annual disclosure of non-custodial cryptocurrency wallet balances exceeding €5,000, extending oversight to self-managed digital assets long shielded from supervision. This rule targets decentralized holdings that operate beyond exchanges and institutional custodians, closing a gap in financial transparency. It is part of France’s intensified enforcement of the EU’s MiCA regulation, driven by concerns over foreign currency dominance and monetary sovereignty.

The Bank of France, led by Denis Beau, has called for limits on the use of dollar-pegged stablecoins across the bloc, arguing their global dominance threatens eurozone autonomy. Such tokens, backed by U.S. dollar reserves, already underpin most cross-border crypto transactions and payment systems. By restricting their role, French authorities aim to create space for euro-denominated alternatives.

Regulators are advancing initiatives like Pontes and Appia—tokenized payment platforms—and pushing for a central bank digital euro to modernize domestic infrastructure. The National Assembly’s new anti-fraud legislation formalizes the €5,000 disclosure threshold, despite concerns about implementation feasibility and data security.

European efforts remain coordinated: the goal is to align crypto frameworks with broader financial security and monetary policy. Yet adoption lags. Italy’s central bank recently noted minimal uptake of MiCA-authorized euro stablecoins, underscoring the difficulty of displacing entrenched dollar-based systems. France’s regulatory push now hinges on both enforcement and promotion—monitoring private wallets while building credible euro alternatives.