The Bank of France wants ESMA to directly supervise major crypto firms under MiCA and to restrict stablecoin multi-issuance.
Governor François Villeroy de Galhau laid out the case in Paris at the ACPR AMF Fintech Forum.
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He warned that fragmented EU crypto regulation risks financial sovereignty and invites arbitrage.
ESMA Supervision Under MiCA: Bank of France Pushes Centralized EU Crypto Regulation
François Villeroy de Galhau urged the EU to give ESMA direct oversight of large crypto-asset issuers.
He said European supervision would ensure consistent MiCA enforcement across member states. The call targets rapid scaling by crypto firms inside the single market.
He stated,
“I also advocate, along with the president of the AMF, for European supervision of crypto-asset issuers, carried out by ESMA.”
The Bank of France framed ESMA control as a way to align EU crypto regulation. It also reduces gaps among national regimes.
He added that reliance on national regulators creates uneven application of MiCA rules. Therefore, he pressed for an ESMA core under MiCA to limit arbitrage.
“The implementation of MiCA is a decisive step forward,” he said. “But its effectiveness requires a more unified approach if we are to protect European investors and maintain a level playing field.”
Stablecoins Under MiCA: Multi Issuance Risks and EU Monetary Sovereignty
The governor flagged dollar-backed stablecoins as a growing risk under MiCA. He said the framework allows multi issuance, where a firm issues the same stablecoin inside and outside the EU. The model can run on partial reserves.
He linked multi issuance to pressure on the euro and settlement rails. He said this could fragment payments and increase reliance on non-European entities.
The concern focuses on private settlement competing with public money and regulated systems.
He called for stricter MiCA rules on stablecoin structures. He pointed to reserve quality, redemption, and disclosure as core items.
The Bank of France position centers on uniform EU crypto regulation for stablecoin issuance and backing.
EU Officials and ESRB: Multi Issuance Faces Coordinated Pushback
On September 19, Bank of Italy Deputy Governor Chiara Scotti warned that multi issuance can threaten stability.
She noted liquidity and scalability benefits. Yet she listed legal, operational, and stability risks, especially with non-EU issuers.
On October 1, the European Systemic Risk Board (ESRB) adopted a recommendation to prohibit multi issuance. The step is not legally binding.
However, it raises pressure on lawmakers to tighten MiCA and EU crypto regulation for stablecoin operations.
These moves align with the Bank of France view. They support a single standard for stablecoin issuance and reserves. They also point to cross-border enforcement under ESMA within MiCA.
Stricter MiCA Rules: Cut Arbitrage and Standardize Stablecoin Reserves
Villeroy de Galhau tied the remedy to a complete European regulatory framework. He urged stricter limits on multi issuance across jurisdictions. The target is stress periods, when gaps widen.
He said, “This framework would benefit from much stricter regulation of the multi-issuance of the same stablecoin from inside and outside the European Union, to reduce arbitrage risks in times of stress.”
The quote points to consistent guardrails. It highlights backing, redemption, and reporting under MiCA.
The Bank of France position places ESMA at the center. It links ESMA authority to reserve adequacy and disclosure. It also links it to faster, consistent EU crypto regulation across the market.
MiCA Passporting: ESMA Flags Malta, AMF Warns of Enforcement Gaps
The MiCA passport lets a licensed crypto firm operate EU-wide from one member state.
It lowers barriers and avoids duplicate filings. However, it depends on national authorities meeting full supervisory duties.
In July, ESMA criticized Malta’s licensing process. It said Malta’s watchdog only partially met expectations when authorizing a crypto company. The finding raised spillover concerns via passporting across the EU.
On September 15, France’s AMF raised enforcement issues tied to MiCA. The regulator said it could consider refusing passporting validity in specific cases.
The comments underscored uneven supervision risks under EU crypto regulation.
European Commission Reform: ESMA Chair Verena Ross Backs Integrated Oversight
The European Commission is drafting plans to shift parts of financial supervision, including crypto, from national regulators to ESMA. The initiative seeks an integrated model for cross-border services.
On Monday, ESMA Chair Verena Ross said the reform would build a more integrated and competitive EU landscape.
Her remarks align with the Bank of France call for centralized MiCA oversight. The thread connects ESMA, MiCA, stablecoin rules, and EU crypto regulation.
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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: October 9, 2025 • 🕓 Last updated: October 9, 2025
