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France Signals Possible Ban on MiCA Crypto Passports Amid Regulatory Gap Concerns

France Signals Possible Ban on MiCA Crypto Passports Amid Regulatory Gap Concerns

France’s AMF considers challenging crypto firms licensed in other EU countries, raising concerns about regulatory inconsistencies under MiCA, while calling for ESMA supervision of major firms.

Fact Check
The statement is true. Evidence from credible news outlets like Reuters and Cointelegraph directly confirms that France's securities regulator has signaled a potential move to block MiCA's 'passporting' feature for crypto firms. The reason provided in the evidence, 'regulatory gap concerns,' matches the reason given in the statement.
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Summary

France’s financial regulator AMF has warned that it may refuse to recognize crypto licenses issued by other EU countries under the MiCA framework, citing concerns over regulatory arbitrage. This move follows similar calls from Italy and Austria for the European Securities and Markets Authority (ESMA) to oversee major crypto firms directly. The proposed restrictions aim to address inconsistencies in national regulations and enhance protections for investors and financial stability. Legal experts debate the feasibility of such a ban under MiCA, while discussions continue on strengthening the framework to close enforcement gaps.

Terms & Concepts
  • Markets in Crypto-Assets Regulation (MiCA): The European Union’s regulatory framework for crypto-assets, allowing firms licensed in one member state to operate across the bloc through passporting.
  • EU Passporting: A mechanism that lets firms authorized in one EU country provide services throughout the EU without separate licenses.
  • European Securities and Markets Authority (ESMA): The EU authority based in Paris responsible for safeguarding markets, proposed by France to oversee major crypto firms under MiCA.