Key Highlights
- France warns some EU-licensed crypto firms may face a ban
- Regulators call for stronger cybersecurity and token oversight
- ESMA could gain new powers as EU debate heats up
France Raises Alarm Over EU Crypto License Loopholes
The French Financial Market Authority (AMF) has warned that it may block some cryptocurrency companies from operating in France, even if they hold a MiCAR license from another EU jurisdiction. According to Reuters, the regulator fears that some firms are exploiting gaps in the European regulatory framework by seeking approval in countries with more relaxed oversight.
AMF head Marie-Anne Barbat-Layani compared the potential move to a "nuclear option," stressing that while France keeps this possibility in reserve, such action would send a troubling signal for the EU’s single market. She noted that crypto firms are actively searching for “weak links” in the system to secure faster and easier licensing.
Regulators Push for Centralized EU Oversight
The AMF, together with Italy’s CONSOB and Austria’s FMA, has urged legislators to grant more powers to the European Securities and Markets Authority (ESMA). In a joint statement, the regulators said that the first months of MiCAR’s implementation revealed major inconsistencies in how national authorities handle crypto markets.
They argued that only a central EU-level regulator could ensure uniform rules across member states, prevent regulatory arbitrage, and strengthen trust in the growing digital asset sector.
Calls to Tighten Rules on Cybersecurity and Token Issuance
Regulators in France, Austria, and Italy have also called for stricter cybersecurity measures and closer supervision of token issuance to protect investors and market stability.
The push comes as major exchanges continue seeking entry into the European market through different jurisdictions. Gemini, for example, secured its MiCAR license in Malta, while Bitvavo and Kraken received licenses in the Netherlands and Ireland respectively.
In June 2025, ESMA Chair Verena Ross voiced support for transferring regulatory powers to ESMA itself, though some EU member states remain opposed. The debate highlights the tension between national regulators and the vision of a truly unified European crypto market.
