France signaled it may challenge the right of crypto firms to “passport” licenses obtained in other EU countries, citing uneven enforcement under the Markets in Crypto-Assets (MiCA) regime. AMF chair Marie-Anne Barbat-Layani said France “does not exclude” refusing an EU passport and called the tool “a bit like the ‘atomic weapon’,” while noting the legal complexity. Italy’s Consob and Austria’s FMA backed France’s push to shift oversight of major firms to ESMA.
MiCA passporting under fire in France
The AMF says some crypto platforms are “regulatory shopping” across Europe. Firms are seeking authorizations where requirements appear lighter, then using passporting to operate across 27 member states. The regulator argues that this behavior exploits gaps in national supervision under MiCA’s first months of application.
Barbat-Layani told Reuters: “We do not exclude the possibility of refusing the EU passport.” She added that such a step would be “very complex legally” and a last-resort tool. The agency did not name specific companies or cases.
France also joined Italy and Austria in a position paper urging lawmakers to enable direct ESMA supervision of major crypto groups. The trio said early application has revealed “major differences” in how national authorities supervise markets. They also floated tighter rules for extra-EU activities, stronger cybersecurity oversight, and a review of new token offering rules.
ESMA supervision push gains momentum
The move would centralize oversight of systemically important or cross-border crypto firms at ESMA in Paris. Proponents say this could reduce fragmentation created by national licensing and passporting. ESMA has already coordinated authorizations by sharing key cases with its Digital Finance Standing Committee.
Verena Ross, ESMA’s head, previously welcomed broader EU-level powers, though member-state resistance remains. The AMF, Consob, and FMA argue that cross-border business models require consistent gatekeeping at the EU center. Their paper highlights the single-hub model: one entity serves clients EU-wide through a passport.
Under this model, the home regulator authorizes the firm while host countries face the outcomes. ESMA says this setup raises the need for “strong supervision of products and services provided on a cross-border basis,” starting at authorization.
Malta peer review fuels the passporting debate
In July 2025, ESMA published a fast-track peer review of Malta’s MFSA involving a specific CASP authorization. The Peer Review Committee praised MFSA’s resources but questioned the timing and thoroughness of one authorization while “material issues” remained. It advised MFSA to assess unresolved matters and strengthen checks on governance, ICT risks, custody, and AML/CFT controls.
The review’s summary table rated MFSA fully meeting expectations on supervisory settings, largely meeting expectations on supervisory review and powers, and partially meeting expectations on the authorization process. The annex shows MFSA accepted the findings and said it is onboarding recommendations.
France’s new stance references these oversight gaps without naming firms. Reuters also notes earlier scrutiny of Malta’s license-granting process, which intensifies calls to curb “weak-link” passporting.
MiCA timeline, transitional licenses, and what changes next
MiCA’s CASP provisions started to apply on December 30, 2024, enabling passporting for authorized companies. National authorities can authorize CASPs and then notify other member states under the passport mechanism. ESMA and national regulators are rolling out supervisory briefings and coordinated reviews to align standards.
A transitional regime lets firms that were lawfully active before December 30, 2024 continue operating for up to 18 months, until July 1, 2026, or until their MiCA authorization is granted or refused, whichever comes first. Member states can shorten this window, which creates different timelines across the bloc.
Regulators also stress that stablecoin rules began earlier, on June 30, 2024, and that broader MiCA application adds staged technical standards. This phased structure explains today’s uneven map while EU bodies work to converge authorization practices and passporting controls.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: August 4, 2025 • 🔄 Last updated: August 4, 2025
