France’s financial regulator, the AMF, has announced that under the European Union’s new MiCA crypto regulations, it may prevent crypto companies licensed in other EU countries from operating in the country. AMF President Marie-Anne Barbat-Layani said that some firms are “buying regulations” and opting for looser licensing standards, and that this threatens investor safety.
MiCA allows crypto companies to operate in all 27 countries with a license obtained from one EU member state. However, in the first months of the regulation, differing practices by national authorities created serious oversight gaps. France, Italy, and Austria are demanding that the supervision of large crypto companies be transferred directly to the European Securities and Markets Authority (ESMA). The AMF emphasized that they are keeping the possibility of rejecting the validity of licenses issued by other countries on the table as a “nuclear option” if necessary.
Key concerns:
- Crypto platforms looking for the weakest link in different countries,
- Licenses issued with insufficient oversight putting investors at risk,
- Cybersecurity and non-EU issues in MiCA Additional rules for activities are needed.
Malta was previously criticized for not conducting sufficient risk analysis when licensing a crypto firm. On the other hand, large platforms such as Coinbase (Luxembourg) and Gemini (Malta) have also obtained EU licenses.
France has long been pushing for broader powers for ESMA. However, this initiative is facing resistance from some EU countries.
