- France may block EU crypto licence passporting over oversight inconsistencies.
- AMF, Consob, FMA urge ESMA to take direct supervision of major crypto firms.
- MiCA faces calls for stricter rules on non-EU activities and cybersecurity.
France warned it could challenge the ability of crypto firms licensed in one EU country to operate across the bloc, raising the stakes in Europe’s rollout of the Markets in Crypto-Assets (MiCA) framework.
The move signals unease that firms are shopping for jurisdictions with looser standards, exploiting gaps in national licensing regimes while still gaining “passporting” rights across all 27 EU member states.
Related: France to Investigate Binance Over Laundering Accusations
Regulators Push for ESMA Oversight
The French markets authority AMF, along with Italy’s Consob and Austria’s FMA, published a joint paper urging lawmakers to hand direct supervisory powers to the European Securities and Markets Authority (ESMA).
The regulators argued that central oversight would reduce uneven interpretations of MiCA, tighten investor protection, and limit arbitrage between national regimes.
AMF president Marie-Anne Barbat-Layani told Reuters that crypto platforms are actively targeting countries with lighter requirements. She added France could, as a “last resort,” refuse to recognize licences from other states, a move she admitted would send a troubling signal about the integrity of the EU’s single market.
Inconsistent Licensing Practices Emerge
MiCA, which came into force this year, was designed to harmonize digital asset rules. But early implementation has exposed wide discrepancies in how national regulators handle licence approvals.
Malta has already faced scrutiny after ESMA flagged weaknesses in its risk reviews for at least one crypto company. Luxembourg granted a licence to Coinbase, while Gemini secured authorization in Malta, decisions critics say highlight the fragmented approach.
Call for Stricter MiCA Rules
France, Italy, and Austria also want MiCA tightened to address gaps. Their proposals include:
- Stronger restrictions on non-EU activities.
- Enhanced oversight of cybersecurity standards.
- Clearer guardrails for new token offerings.
Barbat-Layani stressed that France has consistently pushed for ESMA to take the lead. While ESMA chair Verena Ross has welcomed the idea, some member states remain resistant to losing control over supervision.
With crypto companies continuing to apply for licences in the transition period, the question of whether France will move from warning to action, blocking passporting rights outright, remains unresolved.
Related: France Plans Using Surplus Electricity for Bitcoin Mining, Earn $150 Million in Revenue
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