Paris, October 2025 – France has warned that it may take measures to block certain cryptocurrency companies, licensed in other European Union (EU) countries, from operating on French soil. This development is part of a broader push to centralize crypto regulation under the European Securities and Markets Authority (ESMA).
French regulators, alongside counterparts in Italy and Austria, are advocating for tighter EU-level oversight to prevent the fragmentation of crypto regulations across member states. Their concern is that the current system of “passporting” – which allows crypto firms licensed in one EU country to operate throughout the bloc – could create loopholes and regulatory inconsistencies.
According to officials, the move aims to protect consumers and financial stability by ensuring that crypto firms comply with harmonized standards across the EU. Without such measures, some companies might exploit differences between national regulations, creating potential risks for investors and undermining market integrity.
The French warning underscores growing tensions within the EU over the implementation of the Markets in Crypto-Assets (MiCA) regulation, which is set to establish a comprehensive framework for digital assets. While MiCA provides a unified legal framework for crypto operators, some member states argue that it may not go far enough to address systemic risks, particularly for high-risk assets and cross-border activities.
Industry observers suggest that if France follows through, it could influence other EU countries to reconsider how crypto passporting is applied, potentially delaying the full rollout of MiCA and affecting crypto firms’ expansion plans across Europe.
For crypto companies and investors, this highlights the importance of regulatory compliance and careful navigation of the EU’s evolving legal landscape. As the MiCA framework continues to take shape, market participants will need to monitor regulatory signals from key member states like France, Italy, and Austria.
