France now requires self-custody Bitcoin holders to declare holdings above €5,000 to the DGFIP, its tax authority. The DGFIP told parliament it cannot enforce it.
This is the most honest thing a regulator has said in years.
The state writes laws it cannot enforce for the same reason companies publish terms they cannot monitor: to create a paper trail, not a constraint. The declaration is not designed to collect your Bitcoin. It is designed to make non-disclosure into a crime. They will prosecute a handful of visible cases, build the case law, and let the chilling effect do the rest.
The architecture already answered this question. A wallet with no KYC, held on hardware with no registered address, on a network with no administrator — it has no obligation and no permission request to ignore. It lives outside of your jurisdiction.
The admission in the law is not a weakness. It is a confession. The architecture already won.