Catenaa, Sunday, September 21, 2025-France warned it may block crypto firms licensed in other EU countries from operating domestically, intensifying calls for centralized European oversight of the multi-trillion-dollar digital asset sector.
Marie-Anne Barbat-Layani, head of France’s financial watchdog AMF, said some companies are engaging in regulatory “shopping” by seeking licenses in jurisdictions with weaker rules.
Under the EU’s Markets in Crypto-Assets (MiCA) framework, licenses granted in one member state allow companies to “passport” across the 27-nation bloc. Barbat-Layani described the possibility of challenging such passporting as an “atomic weapon,” signaling France’s willingness to act if national supervision is inadequate.
Italy and Austria have joined France in urging the European Securities and Markets Authority (ESMA) to take over supervision of major crypto firms, citing inconsistencies in the application of MiCA rules across jurisdictions.
France, Italy, and Austria also called for stricter regulations for crypto activities outside the EU, improved cybersecurity oversight, and review mechanisms for new token offerings. Past scrutiny of Malta’s license approvals and Coinbase’s EU licensing demonstrates uneven enforcement, fueling demands for centralization.
ESMA’s leadership has expressed openness to increased powers, but some EU members remain resistant.
MiCA, which came into force this year, aims to regulate digital assets across the EU, but early implementation has revealed significant divergences.
France’s stance highlights rising tension between national authorities and EU-level regulators over investor protection, market stability, and harmonized rules for the rapidly expanding crypto sector.
