France’s top market watchdog has warned it might refuse “passport” licences issued by other EU states, underscoring a push to shift crypto supervision to the bloc’s central regulator.
France May Block EU licensed Crypto Firms as Regulators Seek Greater Oversight: Reuters
16 September 2025 - 08:44 CEST
The head of France’s Autorité des Marchés Financiers (AMF) told Reuters that the new Markets in Crypto‑Assets (MiCA) Regulation is proving uneven across Europe. The rules allow crypto platforms to obtain a licence in one member state and use it to operate throughout the EU.
AMF president Marie‑Anne Barbat‑Layani said some firms are already hunting for jurisdictions with lenient standards, a practice she labelled “regulatory shopping.”
Stepping in
“We do not exclude the possibility of refusing the EU passport,” Barbat‑Layani said. “It’s very complex legally and not a very good signal for the single market – it’s a bit like the ‘atomic weapon’ … but it’s still a possibility we hold in reserve.”
France joined Italy and Austria in a position paper this week calling for the European Securities and Markets Authority (ESMA) to oversee major crypto firms.
The regulators argued that the first months of the MiCA Regulation’s application have revealed “major differences in how crypto‑markets are being supervised by national authorities” and that direct European oversight would better protect investors.
Where to next?
The trio also urged lawmakers to tighten the MiCA Regulation by strengthening rules on activities outside the EU, bolstering cybersecurity oversight and revising procedures for new token offerings. Malta has already faced scrutiny after an ESMA review concluded it did not adequately assess risk when granting a crypto licence.
Barbat‑Layani’s warning underscores broader concerns that a fragmented regulatory regime could allow gaps in oversight as digital asset markets grow. Regulators globally have cautioned that poorly supervised crypto activities could destabilize markets and harm investors.
The debate over passporting highlights the need for reconciliation between national autonomy and the EU’s diverse framework, which collectively comprises a $19.4 trillion economy measured by gross domestic product in 2024.
