France Clamps Down on Crypto Firms: MiCA Licenses Ignored Over Lax Jurisdictional Standards

France throws regulatory gauntlet at crypto operators—even those waving MiCA credentials get sidelined over compliance concerns.

Regulatory Roulette

Paris isn't playing nice with crypto firms hopping borders through loophole-riddled jurisdictions. The Autorité des Marchés Financiers tightens screws, demanding tougher safeguards than MiCA's baseline—because when has 'minimum viable compliance' ever worked in finance?

Active vetting cuts through licensing shortcuts. Firms face deeper scrutiny on anti-money laundering protocols and operational transparency—no more regulatory tourism for lightweight registrations.

Finance's old guard might smirk: 'Crypto learning that rules apply? How novel.'

Push for EU-level supervision

According to a position paper seen by Reuters, France joined Italy and Austria in calling for the European Securities and Markets Authority (ESMA) to directly supervise major crypto firms.

The regulators warned that inconsistent national practices could undermine investor protection and market stability. Barbat-Layani said France is prepared to use an “atomic weapon” by refusing to recognize licenses granted elsewhere in the EU.

She said:

“It’s very complex legally and not a very good signal for the single market… but it’s still a possibility we hold in reserve.”

The AMF did not name specific firms, though Coinbase has received a MiCA license in Luxembourg and Gemini obtained one in Malta during the transition period.

National differences under scrutiny

ESMA, which has previously urged lawmakers to consider pan-EU supervision, said it continues to work to ensure consistent authorizations across member states.

Malta, one of the first countries to embrace digital asset rules, was criticized by ESMA earlier this year for shortcomings in its licensing process.

France, Italy and Austria also urged lawmakers to tighten MiCA rules, including stronger oversight of firms’ activities outside the bloc, enhanced cybersecurity standards, and clearer rules for new token offerings.

The push faces resistance from some EU members who prefer to keep national control, but ESMA chair Verena Ross has said she WOULD welcome broader authority.

At stake is oversight of a rapidly expanding multi-trillion-dollar industry, which regulators fear could destabilize financial markets if left unevenly supervised.