France Threatens to Block EU Crypto Passporting Over MiCA
France’s markets regulator (AMF) has warned it may refuse to recognise EU crypto licences under the MiCA passporting model, citing regulatory arbitrage and inconsistent application of crypto regulation across member states. Under MiCA, a licence granted in one country typically lets operators trade EU-wide, but divergent rules on grandfathering and simplified procedures have fuelled licence shopping. The AMF’s stance follows ESMA criticism of lax licensing checks in Malta and joins Austria and Italy in calling for stronger bloc-level oversight. Paris also backs shifting parts of supervision to ESMA, deepening the debate between centralised and decentralised approaches to crypto regulation. Legal experts note that blocking passporting could conflict with MiCA’s text but is technically feasible with additional legislation—potentially raising legal complexity. Traders should monitor these developments, as they could influence market entry, compliance costs and the competitive landscape under EU crypto regulation.
Neutral
This regulatory announcement focuses on licensing and oversight rather than a specific cryptocurrency, so it is unlikely to drive immediate price movements. Short-term uncertainty around compliance and market entry may cause volatility in related service providers but won’t directly affect token valuations. In the long term, harmonised rules under MiCA could enhance market stability and investor confidence. Overall, the impact on crypto asset prices is expected to be neutral.