France Considers Blocking EU-Approved Crypto Companies, AMF Advocates for Centralized Regulation: Report

France has issued its most significant warning to date regarding the future of cryptocurrency regulation in Europe, indicating it may seek to prevent certain crypto companies licensed in other European Union nations from operating within its borders, as reported by Reuters.

This action highlights increasing apprehension that inconsistent licensing standards throughout the bloc could pose risks to investors and markets.

Marie-Anne Barbat-Layani, the head of France’s financial regulatory authority, the Autorité des marchés financiers (AMF), informed Reuters that the nation desires the oversight of the sector to be transferred to the European Securities and Markets Authority (ESMA) based in Paris. This announcement follows appeals from Italy and Austria for a more unified approach to the regulation of the crypto industry.

MiCA Passporting Sparks Debate

The EU’s Markets in Crypto-Assets (MiCA) regulation, which became effective earlier this year, permits crypto companies to obtain licenses in one member state and subsequently utilize that approval to operate across the bloc’s 27 nations—a process referred to as “passporting.”

While the framework promotes uniformity, regulators and policymakers have cautioned that it may lead to loopholes. Certain jurisdictions are implementing less stringent standards, potentially enabling companies to seek the easiest path to approval before broadening their operations throughout Europe.

Barbat-Layani notes that this fragmented oversight raises concerns about whether companies are sufficiently monitored as they expand their cross-border activities.

The “Atomic Weapon” Option

In a demonstration of France’s readiness to act independently if necessary, the AMF informed Reuters that it would not dismiss the possibility of contesting the legitimacy of licenses issued in other EU countries. Such an action would challenge the principle of passporting, which has long been fundamental to Europe’s unified financial market.

“We do not exclude the possibility of refusing the EU passport,” Barbat-Layani stated. “It’s very complex legally and not a very good signal for the single market—it’s a bit like the ‘atomic weapon’ … but it’s still a possibility we hold in reserve.”

The AMF did not clarify which companies might be subject to examination or the criteria under which their licenses could be denied.

A Key Juncture for Crypto Oversight

The stability of a global crypto market valued in the trillions of dollars is at stake. Regulators around the world have consistently warned that insufficient oversight could lead to financial instability and negatively impact retail investors.

France just dropped a warning shot.
Its regulator AMF says it may block crypto firms using MiCA licenses from other EU states.
Translation: No sneaking in through the “easy countries.”
Passport denied.
Europe’s crypto fight just got real.

— CeranosFinance (@CeranosFinance) September 15, 2025

By advocating for ESMA to assume supervision of the largest crypto firms, France and its allies are signaling that national strategies may not be adequate to mitigate the risks.

The willingness of other EU members to grant more authority to the bloc’s central regulator will influence how Europe manages innovation, investor protection, and market stability.

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