France May Block EU Crypto Licenses in Oversight Clash
France’s Warning on Passporting
France’s financial watchdog has issued its strongest warning yet over regulatory gaps in Europe’s crypto framework, saying it may move to block some firms licensed abroad from operating domestically. The Autorité des Marchés Financiers (AMF) said it is concerned that crypto companies are “shopping” for lenient jurisdictions under the EU’s new MiCA regime, which allows firms to obtain licences in one member state and use them across the bloc.
Marie-Anne Barbat-Layani, president of the AMF, told Reuters that France could even consider challenging the validity of an EU passport granted by another member state. “It’s very complex legally and not a very excellent signal for the single market—it’s a bit like the ‘atomic weapon’—but it’s still a possibility we hold in reserve,” she said.
Investor Takeaway
Oversight Gaps Under MiCA
MiCA, which took effect this year, was designed to harmonize digital asset regulation across the EU. But the first months of its rollout have revealed major differences in how national markets. Some regulators are perceived to be issuing licences rapidly, with limited scrutiny of applicants’ risk profiles.
In a joint paper published Monday, France joined Italy’s Consob and Austria’s FMA in calling for the European Securities and Markets Authority (ESMA) to take over . The regulators argued that direct EU-level oversight would provide more consistent investor protection and reduce opportunities for regulatory arbitrage.
The move follows an ESMA review of Malta’s financial regulator, which faced criticism for insufficient due diligence when granting a licence to one unnamed crypto company. Malta defended its record as an “ahead adopter” of digital asset rules.
Why France Wants ESMA in Control
France has long advocated giving ESMA stronger powers over Europe’s financial markets. ESMA chief Verena Ross has said she would welcome expanded authority over crypto, but the proposal faces resistance from some member states wary of ceding sovereignty. Still, momentum is building: the AMF, Consob, and FMA argue that only of a multi-trillion-dollar industry with cross-border reach.
Their paper also called for stricter rules around non-EU activities, stronger cybersecurity supervision, and a reassessment of how new crypto token offerings are managed. These revisions, they argue, are necessary to close loopholes exposed during MiCA’s ahead months.
Investor Takeaway
What It Means for Crypto Firms
for MiCA licences during a transition period. Luxembourg recently granted a licence to Coinbase, while Malta licensed Gemini. France’s warning suggests that even passported firms could face hurdles if host regulators view their oversight as insufficient.
For investors, the dispute underscores the fragility of Europe’s single-market promise in crypto. While MiCA aimed to create uniformity, diverging national practices and rising regulatory tensions may complicate expansion strategies for platforms and stablecoin issuers. Whether ESMA ultimately takes the reins will determine how consistent—and how credible—EU oversight becomes.
