Michaela
France’s financial regulator, the Autorité des Marchés Financiers (AMF), has signaled it could move to restrict crypto firms using licenses from other EU member states, citing concerns that uneven enforcement of the bloc’s Markets in Crypto-Assets Regulation (MiCA) may leave regulatory gaps.
Key points:
- France’s AMF warned it may reject EU “passport” licenses for crypto firms, citing uneven enforcement of MiCA rules across member states.
- Regulators voiced concerns over “regulatory shopping,” with firms seeking approval in countries with looser requirements.
- France became the third nation to call for ESMA to directly supervise major crypto companies, aiming to strengthen EU-wide consistency.
According to Reuters, France’s securities regulator raised concerns that crypto firms may be taking advantage of the EU’s new regulatory framework by gravitating toward member states with more flexible licensing requirements. Under rules introduced this year, digital asset companies can obtain authorization from a single EU country and then use that license as a “passport” to operate across all 27 member nations.
The implementation of MiCA has already spotlighted uneven application of the rules among national regulators, sparking debate over whether certain licenses are being issued too hastily and if cross-border operators are receiving sufficient oversight. The AMF noted that it would not dismiss the option of deploying what it called the “atomic weapon” — formally contesting the validity of a license granted by another EU member state for use in France.
“We do not exclude the possibility of refusing the EU passport,” Marie-Anne Barbat-Layani, president of the AMF, stated. Crypto firms are doing “regulatory shopping all over Europe, trying to find a weak link that will give them a licence with fewer requirements than the others,” Barbat-Layani claimed.
Furthermore, France has joined a growing push for centralized oversight of digital assets, becoming the third nation to advocate for the Paris-based European Securities and Markets Authority (ESMA) to directly supervise large crypto firms.
According to Reuters, which reviewed a position paper outlining the stance, French authorities argue that entrusting ESMA with this responsibility would strengthen regulatory consistency across the European Union.
France’s position signals that the future of crypto regulation in Europe is far from settled. While MiCA was intended to harmonize oversight across the bloc, the growing debate shows just how difficult it is to balance national sovereignty with the need for consistent enforcement.
By raising the possibility of rejecting licenses and advocating for stronger centralized supervision through ESMA, French regulators are pressing for a more uniform system that could reshape how digital assets operate across the EU.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
