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2025-09-15 17:36:15
EU Crypto "Passport" Faces Obstacles, France Plans Regulatory Barriers (1) The head of France's financial regulator expressed concern that crypto companies would choose jurisdictions with more relaxed regulatory standards under the EU's new regulatory framework. France may prevent crypto companies licensed in other EU countries from operating in the country. (2) The EU's Markets in Crypto-Assets Act (MiCA) allows crypto companies licensed in a single member state to operate across the EU, a practice considered a "passporting" mechanism. However, the act has exposed inconsistent regulatory implementation across countries, raising concerns about the speed of license issuance and the effectiveness of cross-border oversight. (3) France, along with Italy and Austria, has called for the European Securities and Markets Authority (ESMA) to take over oversight of large crypto companies. France has even expressed concerns about taking "atom-of-the-weapon" measures to challenge the passporting effect of licenses issued by other member states, demonstrating its strong commitment to regulatory uniformity. (4) France, Italy, and Austria have also proposed amendments to MiCA, including stricter regulations for crypto companies' activities outside the EU, strengthened cybersecurity oversight, and a review of how authorities manage new cryptocurrency token issuances. 5. It is worth noting that France has long advocated for giving ESMA greater powers. Although the head of ESMA welcomed this, the move has faced resistance from some EU member states.
