- France may reject crypto passporting licences from other EU states.
- France, Italy and Austria want ESMA to supervise major crypto firms.
- Differences in national licensing raise concerns under MiCA rules.
France’s financial regulator has warned that crypto passporting under the EU’s MiCA framework may create weak points in oversight, raising the risk of firms exploiting lighter rules in certain jurisdictions. The Autorité des marchés financiers (AMF) says it may even consider blocking licences granted by other EU states if standards appear too lenient. MiCA allows companies to operate across the 27-nation bloc with a single licence, but France, Italy and Austria argue that supervision differs too widely. They want the European Securities and Markets Authority (ESMA) to oversee the largest platforms. AMF president Marie-Anne Barbat-Layani called the option to refuse a passport an “atomic weapon,” stressing that it remains a last resort. The debate reflects how crypto passporting, designed to promote cross-border access, risks exposing regulatory gaps if national authorities diverge.
Paris push to move crypto passporting oversight to ESMA
France’s Autorité des marchés financiers says MiCA’s first months reveal uneven authorisations across member states, and it wants ESMA in Paris to supervise the largest platforms to close those gaps. AMF president Marie-Anne Barbat-Layani told Reuters that the agency “does not exclude the possibility of refusing the EU passport,” calling that route an “atomic weapon” because it would signal stress in the single market even if used only as a reserve option. The statement lands in a week when France joined Italy and Austria in a joint paper calling for direct European supervision of major providers, and the text argues that divergent practices already show up in how national teams apply MiCA. The law came into force this year and allows a firm licensed in one member state to operate across the bloc, but the AMF worries firms may search for lenient regimes and use crypto passporting to scale quickly without equivalent controls. France frames the issue as investor protection in a multi-trillion-dollar asset class rather than a turf battle, and it points to the risk that fast approvals and light follow-up can leave cross-border businesses only loosely monitored.
Crypto passporting risks and France’s threat to block licenses
Barbat-Layani’s remarks go beyond general concern and set out a concrete lever: challenge the right to operate in France if the original authorisation looks too permissive under MiCA standards. Passporting under the single market is a cornerstone of EU finance, yet the AMF says platforms “are doing their regulatory shopping all over Europe,” a pattern that can turn a strength into a weak point if requirements vary too widely. The agency did not name firms or list criteria for a challenge, but the warning alone pressures national teams to tighten due diligence. France’s stance mirrors a wider move among supervisors who want the same rules in practice as on paper, and it underscores how crypto passporting can test the balance between national autonomy and bloc-wide consistency. If ESMA takes the lead for the biggest platforms, the day-to-day checks could align more closely, and firms would face a single yardstick on governance, reserves, cybersecurity and disclosures rather than a patchwork.
Divergent national supervision under MiCA and the push for uniform rules
The joint paper from France’s AMF, Italy’s Consob and Austria’s FMA says the first months of MiCA show “major differences” in supervision, and it invites lawmakers to build a mechanism that transfers powers to ESMA for key players. ESMA already signalled this direction last year when it asked legislators to consider pan-EU supervision, and the authority now says it will keep working to ensure consistent authorisation and monitoring. The call is not only about who signs the licence. It asks for revisions to MiCA that address third-country activity by EU-licensed platforms, stronger cybersecurity oversight, and a review of how authorities manage new token offerings. Those items matter because crypto passporting lets a business scale across 27 markets once it clears a single gate, so weak testing of operational risk, token due diligence or incident response in one country can echo in another. Direct ESMA oversight of the largest groups could narrow those gaps, while national teams retain roles for smaller firms and local enforcement, and the mix aims to protect investors without freezing cross-border activity that MiCA intends to permit.
Coinbase, Gemini, and Malta: case studies in licensing and review
Licensing decisions already highlight the stakes. Luxembourg granted a MiCA licence to U.S.-listed Coinbase (COIN.O), and Malta approved a licence for Gemini, the exchange founded by the Winklevoss brothers. Earlier this year ESMA reviewed Malta’s approach and found it did not fully assess risk when granting one unnamed licence, which pushed the island’s authority to defend its record as an early adopter of digital asset rules. The episode shows how crypto passporting can amplify a single assessment, because a green light in one hub travels across borders. France, Italy and Austria did not cite specific misapplications in other states, yet they argue that such differences exist and that a central supervisor would add uniformity. For firms, the message is clear: expect closer scrutiny of internal controls, clearer lines on services outside the EU, and more consistent checks on token listings, custody set-ups and incident playbooks as MiCA’s transition period advances and full compliance becomes the norm.
Conclusion
France’s warning places crypto passporting at the centre of the EU’s regulatory debate, showing how uneven licensing could threaten investor protection. By aligning with Italy and Austria, France pushes for ESMA to supervise the largest platforms, citing major differences in national oversight. Cases in Luxembourg and Malta highlight why a single licence can raise concerns once it applies across 27 member states. If ESMA gains authority, passporting could become more consistent, reducing incentives for firms to seek lenient write 2 or 3 bullets about this article without blowing and don’t use power words and very shortregimes. For now, France signals it may challenge approvals it views as too weak, leaving the balance between national control and EU unity unresolved.
Disclaimer
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