France is taking decisive action to regulate cryptocurrency firms operating within its borders, potentially blocking companies licensed in other EU nations from doing business domestically. As emphasized in the official statement, this initiative, spearheaded by Marie-Anne Barbat-Layani, head of France's financial watchdog, reflects a growing concern over the adequacy of regulatory oversight in the rapidly evolving crypto landscape.
Push for Stricter Regulation
The push for stricter regulation is part of a broader effort to transfer oversight responsibilities to the European Securities and Markets Authority (ESMA) based in Paris. Barbat-Layani highlighted the inconsistencies in how national regulators are implementing the new Markets in Crypto-Assets (MiCA) regulation, raising concerns about the potential for insufficient supervision of cross-border crypto firms.
France's Stance and Potential Challenges
France's stance aligns with similar positions taken by Italy and Austria, as these countries collectively advocate for ESMA to oversee major crypto firms. Barbat-Layani warned that France is prepared to challenge the validity of licenses issued by other EU member states, which could disrupt the existing passporting mechanism that allows companies licensed in one country to operate across the EU.
Review by ESMA and Licensing Approvals
This call for enhanced oversight follows a review by ESMA that scrutinized the licensing processes of certain national regulators, including Malta. As crypto companies begin applying for MiCA licenses, jurisdictions like Luxembourg and Malta have already granted approvals to platforms such as Coinbase and Gemini.
Proposed Revisions to MiCA
In response to the evolving regulatory landscape, French, Italian, and Austrian regulators are pushing for revisions to MiCA that would impose stricter rules on crypto activities outside the EU, enhance cybersecurity measures, and improve the management of new digital asset offerings.
- Stricter rules on crypto activities outside the EU
- Enhanced cybersecurity measures
- Improved management of new digital asset offerings
Currently, Joseph Chalom, co-CEO of SharpLink Gaming, continues to address the evolving landscape of the crypto treasury trend and its implications for the market. For more details on his insights, see the full report here.
