EU-wide crypto licenses in danger? France checks restrictions
Crypto companies that have acquired licenses in certain countries could be blocked in France. The country threatens to go alone on the subject of “passporting”.
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• France could prohibit crypto companies business operations
• The AMF warns of gaps in the Mica Ordinance
• EU supervisory authorities are working on convergence when admission and supervision
Crypto companies that are licensed in other countries could be banned from business in France.
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“EU passport porting” at a glance
According to information from Reuters, the French securities supervisory authority AMF is concerned that crypto companies are looking for a milder licensing standards as part of the new EU regulation regime. President Marie-Anne Barbat-Layani warned against the news agency that France could try to block some crypto companies licensed in other EU countries. This is part of the efforts to transfer the supervision of the blocks of the block, the head of the French financial supervisory authority to Reuters.
Concern for gaps in the regulation
Specifically, Barbat-Layani told Reuters that she was concerned about possible gaps in the enforcement of the European Ordinance on Markets for Crypto-Assets (Mica), the world’s first comprehensive framework for cryptocurrencies.
The AMF fears that some crypto companies could apply for licenses in less strict EU countries. “We do not rule out the possibility of rejecting the EU passport,” she said, adding that the “very complex” was and is equivalent to the market of a “nuclear weapon”. The “Passport”, a license plate of the EU internal market for financial services, makes companies that have been approved by a Member State to work throughout the block.
The AMF did not explain exactly which licenses could be challenged.
Other countries share the concerns
In the meantime, regulatory authorities from France, Austria and Italy explained in a position paper that the current approach of “big differences” had revealed in the way in which the individual countries supervised companies. This enables companies to take advantage of different practices.
The EU supervisory authority now apparently wants to accept the matter. The authority is “intensively working on ensuring the convergence in the approval and supervision of crypto providers in the EU,” a spokesman for the ESMA from Bloomberg is quoted. According to this, the EU supervisory authority summed up in a position paper last year that “it was a good time to rethink the areas in which areas a stronger supervision at EU level could make sense,” said Bloomberg, referring to the representative of the authorities.
Editor finance.net