France Threatens to Block Crypto Firms Amid MiCA Licensing Concerns

France is considering blocking cryptocurrency firms licensed in other EU countries from operating domestically, citing concerns over lax regulatory standards in some jurisdictions. The move signals growing tensions over the implementation of the Markets in Crypto-Assets (MiCA) framework, which allows firms to secure a single license for bloc-wide operations.

Marie-Anne Barbat-Layani, head of France's AMF regulator, warned that companies are exploiting regulatory arbitrage by seeking approvals in jurisdictions with weaker oversight. The AMF may deploy its 'atomic weapon'—refusing to recognize EU-wide licenses—to force stricter enforcement.

France, Italy, and Austria are pushing for centralized supervision under the European Securities and Markets Authority (ESMA), arguing that fragmented national interpretations of MiCA threaten investor protection and market stability. The conflict exposes fundamental cracks in the EU's single-market approach to digital assets.