Officials in Paris argue that “passporting” rights — the system at the heart of the EU single market — risk being abused as crypto platforms shop around for the most lenient jurisdictions. AMF chief Marie-Anne Barbat-Layani said companies are deliberately hunting for light-touch regulators, raising doubts about the credibility of MiCA, the landmark framework that was supposed to harmonize rules for all 27 member states.
France is not alone in its concerns. Regulators in Italy and Austria have joined forces with the AMF, releasing a joint proposal that would hand supervisory power to the European Securities and Markets Authority. The move would shift responsibility away from national watchdogs and create a centralized EU authority for crypto, similar to the way banking supervision was tightened after the financial crisis.
Their appeal follows a series of controversial approvals. Coinbase secured its license in Luxembourg, while Gemini won clearance in Malta — a jurisdiction already singled out by ESMA for weak oversight. Such uneven practices, critics say, risk fragmenting the single market and undermining investor protection.
Beyond calling for ESMA oversight, the three regulators also want MiCA itself toughened. Their wishlist includes stricter rules for firms operating outside the EU, mandatory cybersecurity standards, and clearer boundaries for token offerings.
Not all capitals agree. Some governments are reluctant to cede control to Brussels, leaving the bloc divided over how far to centralize supervision. Yet France has hinted it may eventually refuse to honor licenses issued elsewhere if no progress is made — a dramatic step that would put the integrity of EU financial integration to the test.
For now, crypto firms continue to apply for licenses during MiCA’s transition phase, while policymakers weigh whether the framework’s promise of unity can withstand national rivalries and regulatory arbitrage.
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