France Targets EU-Licensed Crypto Firms, Malta Opposes Centralized Oversight

France is moving to block certain cryptocurrency firms licensed in other EU countries from operating within its borders, signaling growing tensions over the bloc's regulatory framework. The Autorité des Marchés Financiers (AMF) has raised concerns that companies are exploiting lenient licensing standards in some member states under the Markets in Crypto-Assets (MiCA) regulation.

The MiCA framework, implemented this year, allows crypto firms to obtain a single license for pan-European operations. However, inconsistencies in approval processes and inadequate cross-border monitoring have prompted France, Italy, and Austria to advocate for centralized oversight by the European Securities and Markets Authority (ESMA).

French regulators have threatened to challenge the EU's passporting system—a nuclear option that could fracture the single market. "We do not exclude the possibility of refusing the EU passport," warned the AMF, highlighting the delicate balance between national sovereignty and regulatory harmonization.