France's crypto tax reporting requirements have created an unexpected security nightmare. Authorities now mandate holders to disclose even self-custodied wallets—not just exchange accounts. The twist? Those reported wallet addresses don't stay confidential. Data breaches have turned tax compliance into a roadmap for criminals, with leaked information reportedly used to target victims for kidnappings and physical robberies. What was meant to ensure tax collection has become a double-edged sword: you pay taxes, then potentially pay again when your holdings become public knowledge. The irony stings—regulatory compliance turning into an invitation for real-world threats.