By Neha Shaikh
Growboo
France is warning it may take steps to block crypto firms licensed elsewhere in the European Union from operating within its borders, as part of a broader campaign to shift oversight of the sector to the EU’s top securities regulator.
Marie-Anne Barbat-Layani, head of France’s financial watchdog AMF, told Reuters that some crypto companies are seeking out EU countries with lighter regulatory requirements under the bloc’s new MiCA framework. MiCA, introduced this year, allows firms licensed in one EU state to “passport” their approval across the 27-member bloc — but the uneven application of rules has raised alarm.
According to Barbat-Layani, France would not completely rule out using the “nuclear option” of rejecting a foreign licence if it believes standards were too weak. “We do not exclude the possibility of refusing the EU passport,” she said, acknowledging that such a move would be legally complex and damaging to the idea of a unified financial market.
The concern is that crypto firms are “shopping” across Europe to find regulators offering easier terms, which could undermine investor protections and oversight.
On Monday, France, Italy, and Austria jointly urged EU lawmakers to hand supervisory powers over major crypto players to the European Securities and Markets Authority (ESMA). In a joint paper, the regulators argued that the first months of MiCA implementation have already revealed major differences in how national authorities interpret and enforce the rules. Direct EU-level supervision, they say, would better safeguard markets and consumers.
ESMA, based in Paris, said it continues to work on ensuring consistency and has previously encouraged lawmakers to consider bloc-wide oversight. Earlier this year, Malta’s licensing process came under scrutiny after an ESMA review found shortcomings in its risk assessments.
As crypto firms continue applying for MiCA licences during the transition period — including Coinbase in Luxembourg and Gemini in Malta — France, Italy, and Austria are pressing for tougher amendments to the framework. These include stricter rules for companies’ non-EU activities, stronger cybersecurity oversight, and a review of how token launches are regulated.
France has long championed a stronger role for ESMA, with its chief Verena Ross also voicing support. However, some EU countries remain resistant to centralising such authority.
