- France proposed making crypto platforms liable for certain DeFi incidents when they actively facilitate access for clients.
- The proposal would require platforms to vet DeFi protocols and monitor them for vulnerabilities and suspicious activity.
- France also backed shifting oversight of significant CASPs to ESMA and reviewing MiCA rules for stablecoins.
France DeFi liability is at the center of a new proposal from French authorities seeking changes to the European Union’s Markets in Crypto-Assets Regulation. In a joint response published Wednesday, France’s Treasury, AMF, central bank and ACPR said crypto-asset service providers should face liability for certain incidents affecting clients when they actively facilitate access to decentralized finance protocols. The proposal would add duties for regulated platforms that connect users to DeFi, even though MiCA currently excludes crypto services delivered in a fully decentralized way without intermediaries. The measures also include protocol checks, monitoring requirements and possible certification of protocols and smart contracts.
France DeFi liability proposal under MiCA
French authorities submitted the proposal as part of a European Commission consultation on whether MiCA should be updated as crypto markets evolve. The consultation asked for views on activities that sit outside the law’s original scope, including DeFi. The responses are set to inform a report to EU lawmakers due by June 30, 2027, and that report could include proposals to amend the law.
Under the French proposal, investor safeguards would be extended to regulated platforms that help customers access DeFi protocols. The authorities said CASPs should be liable for certain incidents affecting clients where they actively facilitated access. That approach would apply despite MiCA’s current exclusion for crypto services provided in a fully decentralized manner without intermediaries.
What platforms would need to do
France DeFi liability would be tied to new checks and ongoing oversight by platforms offering access to DeFi. French authorities proposed that platforms should vet DeFi protocols before making them available to customers. They also said platforms should monitor protocols for vulnerabilities and suspicious activity after access is offered.
The authorities also supported certification of protocols and smart contracts, along with platform liability for certain incidents. Significant CASPs would face the full requirements, while smaller providers would have scaled obligations. Platforms would still be able to connect customers to uncertified protocols if they carry out their own due diligence and provide enhanced risk disclosures.
Broader French positions on supervision and wallets
Beyond France DeFi liability, the authorities also addressed how crypto firms should be supervised in the European Union. France backed plans to move oversight of significant CASPs from national regulators to the European Securities and Markets Authority. It also proposed lowering MiCA’s current threshold of 15 million average daily active users in the EU for identifying significant CASPs.
French authorities said other factors should also be considered when deciding which platforms fall under ESMA supervision. Those factors include custody assets, business risks and group complexity. On non-custodial or self-custodial wallets, the authorities opposed blanket certification requirements for developers, while favoring voluntary certification for more advanced wallets that integrate DeFi services.
Stablecoin rules also under review
France’s response was not limited to DeFi access and platform obligations. The authorities also called for a review of MiCA’s asset-referenced token category. This category covers tokens designed to maintain a stable value by referencing assets or combinations of assets.
The authorities noted that no asset-referenced tokens had been authorized under MiCA. They proposed adapting the e-money token framework so it could cover multicurrency stablecoins. This position was presented alongside the wider MiCA review and the proposed changes affecting DeFi access and significant CASPs.
Conclusion
France DeFi liability reflects a broader French push to adjust MiCA as regulators assess areas that were left outside the law’s initial scope. The proposal would place new duties on crypto platforms that actively connect clients to DeFi, including vetting protocols, monitoring for risks and in some cases facing liability for incidents. France also supported changes to supervision of significant CASPs, suggested lowering the user threshold used to identify them and called for updates to stablecoin rules. These positions were submitted in response to the European Commission’s consultation, with the results feeding into a report to EU lawmakers due by June 30, 2027.France proposed making crypto platforms liable for certain DeFi incidents when they actively facilitate access for clients.
Disclaimer
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