France is taking a firm stance on the regulation of cryptocurrency firms operating within its borders, signaling a potential move to block companies licensed in other European Union (EU) nations from conducting business domestically. 

This latest initiative, led by the head of France’s financial watchdog, Marie-Anne Barbat-Layani, is part of a broader push to shift regulatory oversight to the European Securities and Markets Authority (ESMA), based in Paris.

France Pushes For Centralized Crypto Oversight

According to an exclusive coverage made by Reuters on Monday, the urgency of this move stems from concerns that under the EU’s new regulatory framework, known as the Markets in Crypto-Assets (MiCA) regulation, crypto companies are gravitating towards jurisdictions with more lenient licensing processes.

Barbat-Layani emphasized that there are significant inconsistencies in how national regulators are applying the new rules, raising alarms about the potential for inadequate supervision of cross-border firms.

In a coordinated effort, France has joined Italy and Austria in advocating for ESMA to assume supervisory responsibilities over major crypto firms. This was outlined in a position paper shared with Reuters, highlighting a collective concern about the regulatory landscape.

The head of France’s financial watchdog warned that France would not shy away from employing what she termed an “atomic weapon”—the possibility of challenging the validity of licenses granted by other EU member states. 

This could disrupt the established “passporting” mechanism that allows companies approved in one country to operate throughout the

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Author: Ronaldo Marquez