France Threatens to Block Crypto Firms Exploiting MiCA Passporting

France's financial regulator, the Autorité des Marchés Financiers (AMF), is considering measures to prevent cryptocurrency firms from operating within its borders using licenses obtained from more lenient EU jurisdictions. This move targets "regulatory shopping"—where companies seek favorable oversight under the Markets in Crypto-Assets Regulation (MiCA) framework.

Legal experts are divided on France's ability to enforce such blocks, though precedent suggests member states retain some autonomy. The conflict underscores growing tensions between harmonization and national enforcement as MiCA approaches its first anniversary.

France, Italy, and Austria are now advocating for stronger centralized supervision under the European Securities and Markets Authority (ESMA). Their push reflects broader concerns that inconsistent enforcement could undermine MiCA's goal of creating a unified crypto market.