France May Reject MiCA Crypto Passports Over Enforcement Gap Fears
France warned it may block cryptocurrency companies operating locally under licenses obtained in other European Union countries. Cointelegraph reported Monday that France's securities regulator, the Autorité des Marchés Financiers (AMF), expressed concerns about potential regulatory enforcement gaps.
The AMF is considering a ban on operating in France under MiCA licenses obtained in other member states. Marie-Anne Barbat-Layani, the chair of AMF, described refusing the EU passport as "very complex" and like an "atomic weapon" for the market. The regulator fears crypto companies may seek licenses in more lenient EU jurisdictions.
Under MiCA, which took effect for crypto-asset service providers in December 2024, companies authorized in one member state can use this as a "passport" to operate across all 27 EU nations. France became the third country calling for the European Securities and Markets Authority (ESMA) to take over supervision of major crypto companies. Austria and Italy previously made similar calls.
Why France's Position Threatens MiCA's Core Framework
France's warning highlights fears that uneven standards could weaken MiCA's regulatory framework. The regulation aimed to create uniform crypto rules across Europe while allowing companies to operate EU-wide with a single license. France's concerns stem from companies potentially seeking "weak links" in European jurisdictions with fewer licensing requirements.
The debate follows growing criticism of Malta's crypto licensing regime. In July 2025, ESMA released a peer review finding that Malta's Financial Services Authority only "partially met expectations" in authorizing a crypto service provider. ESMA recommended that Malta assess material issues that were pending at authorization or not adequately considered.
France's position could create significant compliance challenges for crypto companies. If implemented, firms would need separate assessments for each EU market rather than relying on MiCA's passporting system. This would reverse one of MiCA's primary benefits: simplified cross-border operations within the EU.
Broader Implications For EU Crypto Regulation
France's stance reflects deeper tensions about regulatory consistency across EU member states. The three countries backing ESMA supervision also supported revisions to MiCA, including stricter rules for crypto activities outside the EU and stronger cybersecurity oversight. This suggests growing dissatisfaction with current implementation approaches.
The regulatory shopping concern extends beyond France. We reported that Cannes merchants will accept cryptocurrency payments by summer 2025, with municipal officials targeting 90% adoption among local businesses. This crypto-friendly approach contrasts sharply with the AMF's cautious regulatory stance.
Malta currently hosts four major crypto companies under MiCA licenses: Bitpanda, Crypto.com, OKX, and ZBX. If France follows through on blocking MiCA passports, these companies could face restricted access to French markets. The precedent could encourage other countries to implement similar protective measures.
Industry experts suggest the review is unlikely to result in revoked licenses but could force regulators to rethink licensing rigor. FinanceMagnates noted that authorization serves as a key tool for managing risk and ensuring compliance before companies begin operations.
The tension between innovation and protection continues shaping European crypto regulation. France's "atomic weapon" threat could either strengthen MiCA through enhanced enforcement or fragment the unified market the regulation sought to create.
