France warns it may block crypto firms licensed in other EU countries

France has warned it whitethorn effort to artifact cryptocurrency firms operating locally nether licenses obtained successful different European countries, raising enforcement spread concerns astir the European Union’s crypto regulatory framework.

France’s securities regulator, the Autorité des Marchés Financiers (AMF), told Reuters Monday that it is acrophobic astir imaginable regulatory enforcement gaps related to Europe’s Markets successful Crypto-Assets Regulation (MiCA), the world’s archetypal broad crypto regulatory framework.

Concerned that immoderate crypto firms whitethorn beryllium seeking licenses successful much lenient EU jurisdictions, the AMF is considering a prohibition connected crypto firms operating successful France nether MiCA licenses obtained successful different subordinate states.

“We bash not exclude the anticipation of refusing the EU passport,” Marie-Anne Barbat-Layani, the seat of AMF, told Reuters, adding that it’s “very complex,” akin to an “atomic weapon” for the market.

Crypto firms are looking for a “weak link” successful European jurisdictions that volition supply a “license with less requirements than the others,” she added.

Under MiCA, which took effect for crypto-asset work providers successful December 2024, companies authorized successful 1 subordinate authorities tin usage a “passport” to run crossed the 27-nation bloc. France’s informing highlighted fears that uneven standards could undermine the framework.

Related: MiCA tin pull much crypto concern contempt overregulation concerns

France, Austria, Italy telephone for ESMA supervision implicit large crypto firms

France became the 3rd state to telephone for the Paris-based European Securities and Markets Authority (ESMA) to instrumentality implicit the supervision of large crypto firms, according to Reuters, citing a presumption insubstantial seen by its journalists.

Austria’s Financial Market Authority and Italy’s fiscal markets regulator, Commissione Nazionale per le Società e la Borsa, person besides called for regulatory supervision to beryllium transferred to ESMA.

The 3 countries besides backed revisions to MiCA, including stricter rules for crypto activities extracurricular the EU, stronger cybersecurity oversight and a reappraisal of however caller token offerings are regulated.

Related: SEC seat promises announcement earlier enforcement for crypto businesses: FT

The statement follows increasing disapproval of Malta’s crypto licensing regime. In July, ESMA released a adjacent review of the Malta Financial Services Authority’s authorization of a crypto work provider, uncovering that the regulator lone “partially met expectations.”

A ocular summary of the PRC’s appraisal of the MFSA by appraisal area. Source: ESMA

After the review, the ESMA’s advertisement hoc Peer Review Committee (PRC) recommended that the MFSA “assess worldly issues that were pending astatine the day of the authorization oregon that person not been adequately considered astatine the authorization stage.”

Malta’s MFSA “needs to show intimately the maturation successful authorization applications” and place and set supervisory practices successful a timely manner, the PRC added.

Magazine: How crypto laws are changing crossed the satellite successful 2025