France Threatens to Block EU-Licensed Crypto Firms as AMF Demands Centralized Oversight

Paris draws regulatory line in the sand—EU crypto passports might not guarantee French market access anymore.

The AMF's Power Play

France's financial watchdog pushes for centralized EU oversight, arguing current passporting rules create regulatory arbitrage opportunities. No more free passes for crypto firms—even with EU licenses in hand.

Brussels vs Paris Standoff

Creates immediate tension with EU-wide licensing framework. Other member states watching closely as France challenges pan-European crypto integration.

Because when regulators see innovation, their first instinct is to build thicker rulebooks—nothing disrupts disruptive technology like bureaucratic oversight dressed as investor protection.

MiCA Passporting Sparks Debate

The EU’s Markets in Crypto-Assets (MiCA) regulation, which came into force earlier this year, allows crypto firms to apply for licenses in one member state and then use that approval to operate across the bloc’s 27 countries—a process known as “passporting.”

While the framework encourages consistency, regulators and policymakers have warned that it may create loopholes. Some jurisdictions are applying looser standards, potentially allowing firms to shop around for the easiest route to approval before expanding operations across Europe.

Barbat-Layani explains that this oversight patchwork raises questions about whether companies are adequately supervised as they scale cross-border operations.

The “Atomic Weapon” Option

In a sign of France’s willingness to act unilaterally if needed, the AMF told Reuters it WOULD not rule out challenging the validity of licenses granted elsewhere in the EU. Such a step would undermine the principle of passporting, which has long been a cornerstone of Europe’s single financial market.

“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.”

The AMF did not specify which firms might face scrutiny or under what criteria their licenses could be rejected.

A Key Juncture for Crypto Oversight

At stake is the stability of a global crypto industry worth trillions of dollars. Regulators worldwide have repeatedly warned that inadequate oversight could trigger financial instability and harm retail investors.

France just dropped a warning shot.

Its regulator AMF says it may block crypto firms using MiCA licenses from other EU states.

Translation: No sneaking in through the “easy countries.”

Passport denied.

Europe’s crypto fight just got real.

By pushing for ESMA to take over supervision of the largest crypto firms, France and its allies are indicating that national approaches may not be sufficient to address the risks.

Whether other EU members agree to hand more power to the bloc’s central regulator will determine how Europe balances innovation, investor protection, and market stability.