France is taking a firm stance against the current European Union (EU) regulatory framework for cryptocurrencies by threatening to block the ‘passporting’ rights of crypto firms licensed in other EU countries. This move stems from concerns over what France views as lenient licensing standards under the EU’s Markets in Crypto-Assets (MiCA) regulation.
The French financial regulator, Autorité des marchés financiers (AMF), contends that some cryptocurrency companies exploit discrepancies in the regulations across member states. These firms obtain licenses from countries with the weakest rules and subsequently use these licenses to operate throughout the EU single market without adequate oversight.
Concerns Over Regulatory Arbitrage and Investor Protection
France argues that this regulatory arbitrage risks both investor protection and market stability. They warn that the inconsistent application of MiCA rules across the EU could undermine the regulation’s effectiveness and create loopholes.
Support from Other EU Member States
France is not alone in its concerns. Both Italy and Austria have expressed similar opinions. These countries advocate for:
- Stronger, centralized regulation of crypto firms
- Empowering the European Securities and Markets Authority (ESMA) with direct supervisory authority over major crypto companies
This centralized oversight is seen as critical for ensuring uniform supervision and enhanced investor safety across all EU member states.
Current Passporting System and Its Limitations
Under the existing system, a crypto firm licensed in one EU country can freely provide services in other member states without needing additional licenses. While this promotes a unified market, France fears it enables firms to shop for the most favorable regulatory environments, thereby weakening the overall rules.
Outlook on the MiCA Regulation and Regulatory Oversight
The MiCA regulation is designed to establish a clear legal framework and bolster investor protection in the crypto space. Nevertheless, its implementation has been complicated by divergent member state approaches and concerns.
French Finance Minister Bruno Le Maire has underscored the importance of strict, robust rules to close regulatory loopholes and protect both consumers and the financial system from the risks posed by insufficient oversight.
At present, the European Commission has not finalized the oversight structure for crypto regulation. Ongoing discussions will determine how the rapidly growing European crypto market is supervised and regulated moving forward.
Stay tuned to Questiqa Europe News for the latest updates on this evolving regulatory landscape.
About The Author
More Stories
Canada and Germany Forge New Digital Alliance to Boost Advanced Technology Collaboration
Khashoggi Widow Demands French Investigation Into Spyware Phone Hacks Before His Death
Amazon Slashes Seller Fees Across Europe by up to 5% Starting 2026