France may ban licensed crypto companies from operating in the country

The AMF President Marie-Anne Barbat-Layani explained that companies dealing with digital assets choose countries with more lenient standards to obtain licenses in order to operate across Europe. According to the EU Cryptocurrency Regulation Law (MiCA), which came into force this year, companies can obtain a license in one EU member state and conduct activities in all 27 countries of the economic bloc.

Barbat-Layani fears that crypto companies are exploiting this loophole to expand their operations across Europe. This creates significant gaps in oversight of crypto companies and exposes investors to financial risks. Therefore, France does not rule out the possibility of rejecting licenses issued in other EU countries. AMF did not specify which companies may be subject to review or under what criteria a license could be denied.

Earlier, AMF, together with the Italian Companies and Exchange Commission (CONSOB) and the Austrian Financial Market Authority (FMA), appealed to the European Securities and Markets Authority (ESMA) to take over oversight of large crypto companies. The three authorities noted that EU countries apply MiCA rules differently, and a unified application across the EU is needed. Regulators also requested amendments to MiCA to strengthen security standards and control over the issuance of new tokens.

In February, AMF removed the crypto exchange Bybit from its blacklist of unauthorized companies, after which the platform announced its readiness to obtain a license to provide services under MiCA.

See also: "Helius Issues $500 Million Bonds to Purchase Solana"

#Crypto Regulations

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