Exclusive: France threatens to block crypto licence 'passporting' in EU regulatory fight

[TradingPuzzles]

Exclusive: France threatens to block crypto licence 'passporting' in EU regulatory fight

PARIS, Sept 15 (Reuters) - France has warned it may try to block some crypto firms licenced in other EU countries from operating domestically as part of a push to get oversight transferred to the bloc’s central securities regulator, the head of its financial watchdog told Reuters.

France's securities watchdog, the AMF, is concerned that under the EU's new regulatory regime, crypto companies are seeking out jurisdictions with more lenient licensing standards, its president, Marie-Anne Barbat-Layani, said.

MiCA, a landmark set of digital asset rules which came into force this year, allows crypto companies to apply for licences from individual EU members, which they can use as a "passport" to operate throughout the 27-nation bloc.

The legislation has already exposed inconsistencies in how national regulators apply the rules, raising questions about whether some licences are being granted too quickly and whether cross-border firms are being adequately supervised.

[Nahid Hossen]

France pushing back on passporting shows the cracks in EU crypto regulation. If every country blocks licenses from others, MiCA’s whole point of harmonization could collapse.

[Rimon Khan]

If France starts rejecting “lenient” licenses, it could trigger a regulatory race to the top — or simply push innovation out of Europe entirely. The stakes here are bigger than just France’s market.

[Couturier]

France pushing back on crypto passporting shows how fragmented EU regulation still is ️ This could shake up where firms choose to base themselves.