France’s financial regulator, the Autorité des Marchés Financiers (AMF), has raised alarm over the growing number of crypto exchanges seeking MiCAR licenses in EU member states with lighter regulatory frameworks. According to AMF Chair Marie-Anne Barbat-Layani, companies may be exploiting legal gaps to gain access to the entire European market while bypassing more robust oversight requirements. She noted that while legally complex, France could consider blocking access to certain firms, describing such a move as an “atomic weapon” reserved for cases where national financial stability or consumer safety is at risk.
The concern arises from the Markets in Crypto-Assets Regulation (MiCAR), a framework designed to harmonize crypto regulation across the European Union. While MiCAR theoretically allows a license from any EU country to be passported across the bloc, discrepancies in enforcement have already appeared in its early months of adoption. Barbat-Layani stressed that some crypto companies are actively searching for the “weak link” jurisdictions, where approval is easier and supervision less rigorous, to gain unfair entry into larger markets such as France.
France is not acting alone in voicing these concerns. Regulatory bodies from Italy’s CONSOB and Austria’s FMA have joined the AMF in calling for stronger safeguards. The three agencies issued a joint statement urging lawmakers to transfer more supervisory powers to the European Securities and Markets Authority (ESMA). By centralizing oversight, the regulators argue, the EU can ensure a consistent application of MiCAR rules and prevent firms from exploiting national loopholes.
The statement also highlighted the need for stronger cybersecurity requirements, tighter oversight of token issuance, and enhanced supervision of foreign entities operating in the European market. This reflects growing concerns about the resilience of crypto platforms and the systemic risks they may pose if left underregulated.
Several exchanges have already taken advantage of MiCAR licensing flexibility. Gemini obtained its license in Malta, Bitvavo in the Netherlands, and Kraken in Ireland. While these approvals are fully legal under EU law, France and its allies argue that fragmented standards threaten to undermine the credibility of the regulatory framework and weaken investor protections.
Earlier this year, Verena Ross, Chair of ESMA, expressed support for shifting oversight authority to her institution, reinforcing the AMF’s position. However, resistance remains among certain EU member states that prefer to maintain sovereignty over their national crypto markets.
Conclusion: The debate around MiCAR enforcement highlights the growing tension between national regulators and EU-level institutions. France’s warning of potential restrictions marks a significant escalation, signaling that the EU’s experiment with crypto harmonization may face obstacles unless oversight is centralized. For crypto exchanges, the message is clear: regulatory arbitrage within Europe is becoming increasingly difficult, and compliance expectations are only set to rise.
