TLDR
- France’s AMF is considering blocking crypto firms operating under EU licenses issued by other member states.
- The move tests the enforcement of the EU’s Markets in Crypto-Assets Regulation and its passporting system.
- France’s concerns arise from crypto firms seeking licenses in more lenient EU jurisdictions.
- Legal experts are divided on whether France can block passporting under the MiCA framework.
- Calls from Austria and Italy also urge the European Securities and Markets Authority to oversee major crypto firms.
France’s securities regulator, the Autorité des Marchés Financiers (AMF), is considering blocking cryptocurrency firms operating under licenses issued by other European Union member states. This potential move tests the enforcement of the EU’s Markets in Crypto-Assets Regulation (MiCA). France’s position raises concerns about regulatory consistency within the 27-nation bloc, where companies are expected to access the market through MiCA’s passporting system.
AMF’s Concerns Over ‘Passporting’ in the EU
France’s AMF has voiced concerns over crypto firms seeking licenses in jurisdictions with more lenient regulations. Under the EU’s passporting system, firms can operate across the EU using a single license issued by any member state. France is now weighing whether to block firms licensed elsewhere, citing risks of regulatory arbitrage.
Marina Markezic, executive director of the European Crypto Initiative, noted that while MiCA aims to harmonize EU crypto regulations, the potential block would challenge this objective.
“MiCA was designed to create one harmonised framework and give firms access to a single regulated market,” Markezic said.
However, she added, blocking passporting would likely lead to significant legal and political complexities.
Legal experts remain divided on France’s approach. Some view it as a challenge to MiCA’s uniform application, while others argue that such actions are legally possible. Regardless, the move signals rising tensions about how MiCA should be enforced across different EU countries.
France Pushes for Changes in MiCA Enforcement
France’s position reflects growing divergence among EU member states over how to implement MiCA. Austria and Italy have also pushed for the European Securities and Markets Authority (ESMA) to oversee major crypto firms. These calls could lead to amendments in MiCA and shift oversight away from national regulators like the AMF.
While some experts support France’s concerns, others question the feasibility of blocking passporting under MiCA. Edwin Mata, CEO of asset tokenization platform Brickken, believes that MiCA’s direct application across member states makes such actions difficult.
“Legally, the AMF cannot block a duly MiCA-licensed entity from operating in France,” Mata argued.
He further stated that the AMF can only raise concerns or escalate cases to ESMA, not impose unilateral barriers.
Despite these legal challenges, the debate over how MiCA should be enforced highlights a critical issue for the crypto industry. France’s regulatory approach could lead to greater uncertainty and undermine the uniformity that MiCA seeks to establish.
