France has warned that it may try to prevent cryptocurrency companies that run local under licenses obtained in other European countries, which raises concerns at the gap between the European Union regulatory framework.
French security regulator, Autorité Des Marchés Financiers (AMF), said Reuters Monday concerned about European regulatory implementation gaps Crypto-Assets regulation markets (MICA), the first comprehensive framework of crypto regulation worldwide.
Remembering that some crypto companies may be looking for licenses in more EU constituents, AMF is considered a ban on crypto companies operating in France under MICA licenses obtained in other member states.
“We will not exclude the possibility of rejecting the EU passport,” Marie-Anne Barbat-Layani, the AMF leader, told Reuters, added that it was “very complex,” similar to an “atomic weapon” for the market.
Crypto companies are looking for a “weak link” to European constituents that will provide “licenses with fewer requirements than others,” he added.
Under MICA, which took place for crypto-asset service providers in December 2024, companies authorized to a member state could use a “passport” to operate throughout the 27-country bloc. France warning has highlights fears that uneven standards can break the outline.
Related: Mica can attract more crypto investment despite the overregulation concerns
France, Austria, Italy calls for ESMA administration to major crypto companies
France has become a third country calling for Paris based on the European Securities and Markets Authority (ESMA) to occupy the administration of major crypto companies, according to Reuters, citing a paper paper that its journalists see.
The market authority in the Austria market and the regulator of the Italian market regulator, the Nazionale Commission per Le Società e la Borsa, also called for regulation administration to be transferred to ESMA.
The three countries also support changes in MICA, including more strict policies for crypto activities outside the EU, stronger administration of cybersecurity and a review of how new token offerings are regulated.
Related: The SEC Chair promises notice before implementation for Crypto businesses: FT
The debate complies with the growing criticism of the Malta crypto licensing regime. In July, Esma A peer review was released permission of the Malta Financial Services Authority of a Crypto Service Provider, finding that the regulator is “partially achieved expectations.”
After the review, the AD HOC Peer Review Committee (PRC) recommends that the MFSA “assess material issues pending with the date of consent or that is not enough to be considered at the consent stage.”
MFSA of Malta “needs to monitor the growth of permission applications” and identify and adjust administration skills in a timely manner, the PRC added.
