France Challenges MiCA Passporting, Seeks Stronger EU Crypto Oversight

France’s financial watchdog (AMF) has warned it may challenge the EU “passporting” system that lets crypto firms licensed in one EU country operate across the bloc. The AMF fears companies are engaging in “regulatory shopping” by choosing lenient jurisdictions, undermining investor protection under the EU’s new MiCA rules. Alongside Italy and Austria, France is calling for the European Securities and Markets Authority (ESMA) to directly supervise major crypto firms, citing inconsistent national enforcement. The AMF even raised the possibility of blocking foreign-licensed firms from operating in France, describing it as an “atomic weapon” against weak oversight. MiCA, introduced this year, allows cross-border licensing but early implementation has exposed gaps, including Malta’s licensing process. Regulators also urged lawmakers to tighten rules on non-EU activities, cybersecurity, and token offerings. ESMA has said it is working to ensure more consistent supervision and supports pan-EU oversight, though some member states resist giving up authority.

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