Market News

EU Tightens Grip on Crypto as France Signals Possible Nationwide Blockade

France's financial watchdog has raised significant concerns about the regulation of cryptocurrency firms throughout the European Union.

The Autorité des marchés financiers (AMF) has announced it may prevent crypto companies licensed in other EU countries from operating in France.

This development highlights fears about inconsistent licensing standards that could put investors at risk.

Marie-Anne Barbat-Layani, the AMF's chair, is advocating for the European Securities and Markets Authority (ESMA) to take a more active role in regulatory oversight.

The recent Markets in Crypto-Assets (MiCA) regulation permits firms to obtain licenses from one member state and operate in others, yet this has prompted worries over regulatory gaps.

Barbat-Layani warned that existing uneven oversight might undermine effective supervision of cross-border crypto operations.

She stated that France may contest licenses issued in more lenient jurisdictions, potentially threatening the passporting system that facilitates the single EU market.

Additionally, the collaborative regulatory initiative involving Austria, France, and Italy aims to improve oversight and mitigate risks stemming from jurisdictions with relaxed regulations.

Proposed measures include direct supervision by ESMA and obligatory cybersecurity audits for cryptocurrency firms.

As discussions continue, the potential impact on investor protection and overall market stability within the EU remains to be closely monitored.