France has expressed concerns over the possibility of blocking crypto firms operating on its territory with licenses obtained in other EU member states, raising questions about gaps in the bloc's regulatory system.
France's Warning on Licenses
France’s financial regulator, the Autorité des Marchés Financiers (AMF), told Reuters about its concerns regarding potential regulatory gaps related to the implementation of the Markets in Crypto-Assets Regulation (MiCA).
"We do not exclude the possibility of refusing the EU passport," said Marie-Anne Barbat-Layani, the chair of AMF.
She noted that some crypto firms might seek to obtain licenses in more lenient EU jurisdictions.
Joint Initiatives among EU Countries
France has become the third country to call for the European Securities and Markets Authority (ESMA) to take over the supervision of major crypto firms. Financial regulators from Austria and Italy have also backed this initiative.
The countries have called for revisions to MiCA, including stricter rules for crypto activities outside the EU and enhanced cybersecurity oversight.
Critique of Licensing in Malta
The discussions on crypto regulation come amid growing criticism of the licensing system in Malta. In July, ESMA released a review indicating that the local regulator only "partially met expectations" in the process of authorizing a crypto service provider.
Restrictions and changes in the regulation of crypto assets in Europe raise significant questions about the future of crypto firms and potential paths to ensure uniform standards in the industry.
