The French crypto industry is once again in the spotlight. Reuters reveals that France is once again at the heart of European crypto debate, indicating that it could move to block licensed companies in other EU jurisdictions from operating within the country.
The regulatory warning issued on Monday by Marie-Anne Barbat-Layani, Chairman of the Autorité des Marchés Financiers (AMF), highlights the deep fractures already manifested in the European Union’s groundbreaking market in the European Union’s Crypto Asset Regulation (MICA).
MICA, officially enacted by service providers in December 2024, was billed as the world’s first comprehensive digital asset rulebook.
This framework allows crypto companies to obtain permits in one member country and “passport” their licenses in all 27 countries.
The map is clear 246 days after MICA came into effect.
Ireland leads with 123 Mika White Papers.
Germany: 59
LieChtenstein: 36
Malta: 26
Netherlands: 21
France: 7
Spain: 3
246 days after MICA went live, our map shows where Crypto is on sale…pic.twitter.com/1D7y8wf30p
– Storm Partners (@storm_partners) September 2, 2025
However, since the scheme was rolled out, Ireland, for example, has so far received 17.5 times the number of crypto-passports as France.
For businesses, the passport mechanism is an award and an efficient gateway to the block’s single market. However, regulators like the AMF have made fault lines public for the past nine months.
European crypto companies shop for weak jurisdictions
Barbat-Layani warned that companies are already “shopping” for their weakest jurisdictions, and have secured light touch licenses before expanding to larger markets such as France. “The possibility of denying an EU passport is not ruled out,” she told Reuters, comparing the option to “atomic weapons” that can be deployed if the director gap continues.
This comment is because France, Italy and Austria jointly seek the European Securities and Markets Agency (ESMA) to envisage direct surveillance of major crypto companies.
In a joint paper, three regulators argued that the implementation of the early MICA revealed a “major difference” in the way national supervisors interpret and enforce rules. They argue that the direct ESMA oversight they argue is essential to protect investors and ensure a level playing field.
That push follows stinging criticism of Malta’s licensing regime. In July, in a peer review of the ESMA, the Malta Financial Services Agency found that it “partially met expectations” when approving the crypto provider, highlighting a decline in risk assessments and slow follow-up of supervision.
Additionally, the report has encouraged concerns that smaller jurisdictions could become regulatory gateways for businesses seeking rapid EU access.
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Are there other reasons why crypto companies are escheating France?
The regulatory debate of the high stakes unfolds against the tense background in France’s own crypto ecosystem. Over the past few months, a series of violent intrigues targeting crypto entrepreneurs and their families has rattled the industry. French police have attempted to acquiring at least half a dozen of them to demand ransom for digital assets, including cases in which victims were cut off to put pressure on millions of payments.
Security experts warn that some of the new EU reporting requirements could make it easier for criminals to identify wealthy targets.
This double pressure, fragmentation of regulations at the EU level and rising domestic security concerns have put Paris in a difficult position as the summer season approaches.
AMF has spent years on blockchain startups that brand France as a jurisdiction of clarity and reliability, especially after granting a license to Binance’s French organization in 2022.
The interests are high for investors and businesses. If France unilaterally refuses to recognize licenses from other EU states, the single market promises supporting MICA could break before they become fully established.
However, it is important to understand that risk is not just reputation but structural. The divergence of EU oversight will undermine confidence at the moment Europe is considering whether Trump can provide a reliable alternative to America.
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Post-France is threatening to break the EU crypto market as AMF first appeared in 99 Bitcoin.
