France’s markets regulator has raised concerns that nearly one in three crypto companies operating in the country without an EU licence still hasn’t said whether it plans to follow the new MiCA compliance rules or shut down by July.
The warning comes as Europe moves closer to fully enforcing its landmark crypto law, the Markets in Crypto-Assets Regulation (MiCA).
Stephane Pontoizeau, executive director of the AMF’s market intermediaries and market infrastructures supervisory department, said that the regulator had reminded businesses in writing in November that the nation’s transition period to MiCA compliance expires on June 30 of this year.
One-third of French crypto firms silent on MiCA
Of the approximately 90 registered crypto businesses in France without a MiCA licence, 30% had previously applied for one, while 40% had not. According to Pontoizeau, the remaining 30% had not reacted to the November letter or informed the regulator of their plans.
Under MiCA, crypto firms must secure a licence from a national regulator to legally offer services across the European Union.
In France, companies that are currently operating without the approval are expected to either apply for authorisation or exit the market before the transition period ends.
Regulators say the lack of clarity from the firms is worrying, as it could leave users exposed and create last-minute disruption.
Authorities are urging the companies to make their intentions clear soon, as enforcement action is likely once the rules fully come into force.
Crypto companies that don’t follow Europe’s new crypto rules, known as MiCA, will have to shut down by July. The regulation, which fully came into effect in late 2024, sets clear rules for how crypto firms can operate across the EU, covering licensing, governance, and customer protection.
AMF grants licences to a few crypto firms, rules remain strict
In France, the markets regulator, AMF, has only granted licences to a handful of companies so far, showing just how strict the requirements are.
Meanwhile, Europe’s main MiCA watchdog, ESMA, has warned that any crypto firm operating without proper authorisation needs to have a clear plan to wind down smoothly once the transition period ends.
This means making sure customer funds are protected and operations close without chaos.
The message is simple: crypto companies in Europe can’t sit on the fence. If they don’t get licensed, they risk being forced out, and regulators are making sure the process is orderly to avoid disrupting investors.
France criticizes EU crypto passporting, warns of rule-shoppers
France has emerged as one of the most outspoken critics of the EU’s crypto passporting system, warning that some companies might try to game the rules.
Under MiCA, a licence from one EU country lets a crypto firm operate across the entire bloc.
Although the system is intended to ensure smooth trans-border activities, the French authorities are concerned that some companies might relocate to jurisdictions that have laxer regulations.
All these concerns emerge against the background of a tough stance on cryptographic regulation adopted by France.
Until now, only a few companies have received approval by the AMF in view of its tough screening for governance, capital requirements, and consumer protection. Other nations in the EU might have faster and easier approval procedures, raising concerns for the French government.
The levy in other EU nations is putting the spotlight on the current positioning of the French government with regard to the industry. The case illustrates the importance of striking a balance between growth, innovation, and security.