France’s market regulator has warned it could block crypto firms licensed in other European Union countries from operating in its territory.
The Autorité des Marchés Financiers (AMF) told Reuters on Monday, September 15, that it fears some companies may use weak rules in certain EU states to gain entry into the wider market.
AMF chair Marie-Anne Barbat-Layani further stated that the possibility of rejecting these licenses is “a bit like the atomic weapon” but remains an option France may keep in reserve.
Under the EU’s Markets in Crypto-Assets Regulation (MiCA), which started applying to crypto service providers in December 2024, companies licensed in one member state can operate across the bloc through a system known as passporting. Regulators now worry that this process allows firms to shop around for the easiest approval.
“Crypto platforms are doing their regulatory shopping all over Europe, trying to find a weak link that will give them a licence with fewer requirements than the others,” Barbat-Layani said.
France has joined Italy and Austria in calling for the European Securities and Markets Authority (ESMA), based in Paris, to supervise major crypto companies directly. In a joint paper, the three regulators argued that the first months of MiCA have revealed large differences in how national authorities are applying the new rules. They said that central oversight would better protect investors and avoid gaps.
The concerns follow criticism of Malta’s Financial Services Authority after an ESMA peer review found that it only partially met expectations when granting a license to one crypto firm.
The ESMA review noted that Malta’s regulator should keep a closer watch on authorization applications and adjust its supervisory approach when needed. At the same time, regulators in Luxembourg and Malta have issued licenses to major exchanges including Coinbase and Gemini.
Notably, France, Italy, and Austria also urged stricter rules for crypto activities outside the EU such as stronger cybersecurity measures, and clearer oversight of new token launches. Their position highlights ongoing debates about whether Europe’s current framework can keep pace with the fast growth and risks in the crypto market.
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