France signaled it may challenge the right of some crypto firms licensed in other European Union countries to operate domestically, escalating pressure for centralized oversight of the bloc’s digital asset industry, Reuters reported on Sept. 15.
Marie-Anne Barbat-Layani, president of France’s financial regulator AMF, said the agency is increasingly concerned that under the EU’s new Markets in Crypto-Assets (MiCA) framework, firms are seeking out jurisdictions with looser standards to gain quick entry into the 27-nation market.
MiCA, which came into effect this year, allows companies to secure a license in one EU state and use it as a “passport” to operate across the bloc. While designed to harmonize oversight, the regime has already exposed wide differences in how national watchdogs interpret the rules.
Push for EU-level supervision
According to a position paper seen by Reuters, France joined Italy and Austria in calling for the European Securities and Markets Authority (ESMA) to directly supervise major crypto firms.
The regulators warned that inconsistent national practices could undermine investor protection and market stability. Barbat-Layani said France is prepared to use an “atomic weapon” by refusing to recognize licenses granted elsewhere in the EU.
She said:
“It’s very complex legally and not a very good signal for the single market… but it’s still a possibility we hold in reserve.”
The AMF did not name specific firms, though Coinbase has received a MiCA license in Luxembourg and Gemini obtained one in Malta during the transition period.
National differences under scrutiny
ESMA, which has previously urged lawmakers to consider pan-EU supervision, said it continues to work to ensure consistent authorizations across member states.
Malta, one of the first countries to embrace digital asset rules, was criticized by ESMA earlier this year for shortcomings in its licensing process.
France, Italy and Austria also urged lawmakers to tighten MiCA rules, including stronger oversight of firms’ activities outside the bloc, enhanced cybersecurity standards, and clearer rules for new token offerings.
The push faces resistance from some EU members who prefer to keep national control, but ESMA chair Verena Ross has said she would welcome broader authority.
At stake is oversight of a rapidly expanding multi-trillion-dollar industry, which regulators fear could destabilize financial markets if left unevenly supervised.
