France Threatens to Block EU Crypto Firms Over Regulatory Gaps

France is taking a hardline stance on cryptocurrency regulation, warning it may block EU-licensed firms from operating within its borders if oversight under the Markets in Crypto-Assets (MiCA) framework remains inconsistent. The French Financial Markets Authority (AMF) has raised alarms about "passporting"—where a license from one member state grants access to all EU markets—citing concerns over lax enforcement in jurisdictions like Malta.

Regulatory tensions are escalating as Marie-Anne Barbat-Layani, head of the AMF, accuses firms of "regulatory shopping" to exploit weaker supervision. A recent European Securities and Markets Authority (ESMA) review found Malta’s crypto licensing regime only "partially compliant," fueling fears that uneven standards could undermine MiCA’s integrity. France, Italy, and Austria are now pushing for centralized ESMA oversight to close these gaps.