France Threatens Crypto License Ban as MiCA Gaps Persist

- France warns against "regulatory shopping" within the EU framework. - AMF pushes for centralized oversight of crypto firms by ESMA. France warns it may block cryptocurrency firms licensed in other European Union countries from operating within its borders, citing concerns over inconsistent regulatory standards and "regulatory shopping." This move follows the implementation of the EU's Markets in Crypto-Assets (MiCA) framework earlier this year. On September 15, 2025, Reuters reported a growing concern from the Autorité des Marchés Financiers (AMF), France’s financial regulator. The AMF worries that some companies seek licenses in jurisdictions with less stringent regulations to gain access to the bloc’s 27 member states. Under MiCA's rules, firms can acquire a license in one EU country and then "passport" that license to operate across the entire EU. AMF President Marie-Anne Barbat-Layani stated that France may use its option to reject these passports if supervisory gaps remain, calling this option an "atomic weapon" to ensure regulatory integrity. To address these concerns, the AMF has joined regulators from Italy and Austria. Together with Italy’s Commissione Nazionale per le Società e la Borsa (Consob) and Austria's Finanzmarktaufsichtsbehörde (FMA), the AMF advocates for centralized, EU-level oversight of major crypto firms. In a joint paper, the three regulators proposed granting the European Securities and Markets Authority (ESMA) direct supervisory authority. The paper also called for MiCA amendments, such as stricter rules for non-EU crypto firms, enhanced cybersecurity measures, and improved regulation for new token launches. The regulators' push for centralized control gained momentum after a peer review by ESMA. Earlier this year, the review found that Malta's financial authority did not properly evaluate risks before licensing a crypto company. Malta and Luxembourg have licensed major exchanges, including Gemini and Coinbase, respectively. Despite this, France indicates it may challenge such licenses if it believes the approving authorities used standards that were too lenient. An ESMA spokesperson acknowledged the importance of consistent supervision across the EU and reiterated the agency’s previous suggestions for a centralized regulatory role. ESMA Chair Verena Ross reportedly supports the idea, although some EU members resist transferring oversight power from national to EU-level authorities. This reflects ongoing divisions within the bloc regarding the future of crypto regulation.