France warns it may block crypto ‘passporting’ licences
France has signaled it may refuse to recognise crypto licences issued by other EU countries, escalating a push to transfer oversight of major crypto firms to the European Securities and Markets Authority (ESMA).
The country’s financial watchdog, AMF, is concerned that under the EU’s new MiCA rules, crypto companies are seeking licences in member states with more lenient standards, allowing them to operate across the 27-nation bloc, News.Az reports, citing Reuters.
“We do not exclude the possibility of refusing the EU passport,” said Marie-Anne Barbat-Layani, president of the AMF. “It’s very complex legally and not a very good signal for the single market—it’s a bit like the ‘atomic weapon’… but it’s still a possibility we hold in reserve.”
MiCA, which came into force this year, allows crypto companies to obtain a licence in one EU country and then operate across the bloc. However, regulators say inconsistent national enforcement has exposed gaps that could leave investors at risk and create opportunities for “regulatory shopping.”
On Monday, France joined Italy and Austria in calling for ESMA to oversee major crypto platforms directly. The three regulators also proposed stricter rules for crypto companies’ operations outside the EU, improved cybersecurity supervision, and a review of how authorities manage new token offerings.
The call for stronger EU-level supervision follows earlier concerns over countries like Malta, whose licence-granting practices were criticised by ESMA for insufficient risk assessment. Meanwhile, Luxembourg has granted a licence to U.S.-listed exchange Coinbase, and Malta licensed Gemini, the Winklevoss-founded exchange.
“Crypto platforms are doing their 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 added.
While ESMA head Verena Ross supports the transfer of supervisory powers, some EU members remain resistant, leaving the future of EU crypto oversight in flux.
Similar news
