France Puts Pressure on EU Licensing Rules
France is threatening to block crypto companies licensed in other EU countries from operating within its borders, raising tensions over the bloc’s newly implemented Markets in Crypto-Assets (MiCA) framework. According to Reuters, the Autorité des Marchés Financiers (AMF) is considering this drastic move as part of a broader push to centralize supervision under the European Securities and Markets Authority (ESMA).
Under MiCA, licenses granted in one EU country allow firms to operate across the entire bloc. France claims this has exposed serious gaps in oversight, and now it wants the problem fixed quickly.
France, Italy, and Austria Push for ESMA Control
France is not acting alone. On Monday, it joined forces with Italy’s Consob and Austria’s FMA in a joint paper urging ESMA to take charge of supervising major crypto firms.
The regulators warned that “major differences” in supervision have already appeared in MiCA’s first few months, leaving opportunities for companies to exploit weaker jurisdictions. They also called for tougher cybersecurity requirements, greater oversight of token launches, and stricter rules for firms operating outside the EU.
Malta and Luxembourg in the Spotlight
The debate intensified earlier this year after ESMA criticized Malta’s regulator for not properly assessing the risks when granting a license to a crypto firm. Malta defended itself, citing its role as an early adopter of EU crypto rules, but the criticism struck a nerve.
Other approvals have also raised eyebrows, including Luxembourg’s license for Coinbase and Malta’s approval of Gemini, the U.S. exchange founded by the Winklevoss twins. France has hinted it could challenge such licenses if it believes they were issued under weak standards.
During MiCA’s transition phase, crypto firms are still applying for licenses. No company has been directly named as a target of potential rejection, but the threat remains on the table.
France Pushes Long-Term Oversight Shift
This is not a sudden change of stance. France has long advocated for more EU-level oversight of crypto. By pressing for ESMA to assume authority, Paris hopes to establish a consistent regulatory environment across all member states.
ESMA chair Verena Ross has already said she is open to the idea, but not all EU countries are eager to hand over supervisory power. The dispute reflects broader tensions between national sovereignty and EU integration, particularly in fast-moving sectors like digital assets.
A Divided Europe on Crypto’s Future
The fight over who supervises Europe’s crypto sector could shape how the industry develops within the bloc. While France, Italy, and Austria demand stricter centralization, other states defend their right to regulate at the national level.
With the global stablecoin market booming and crypto adoption rising across Europe, critics warn that regulatory fragmentation risks slowing down innovation while others insist tougher, unified rules are the only way forward.
For now, France’s threat to reject licenses stands as a warning shot, signaling that the EU’s promise of a single crypto market under MiCA is far from settled.
