The French cryptography industry is again under the spotlight, because Reuters revealed that France is again positioning itself at the center of the European cryptographic debate, indicating that it could prevent authorized companies in other EU jurisdictions of the national operation.
The regulatory warning, delivered on Monday by the president of Authority for Financial Tops (AMF), Marie-Anne Barbat-Layani, underlines the deep fractures which already emerge under the historical markets of the European Union in the regulation of crypto-sets (Mica).
Mica, which officially took effect for service providers in December 2024, was presented as the first complete digital asset rules book.
The framework allows cryptographic companies to obtain authorization in a Member State and “passport” their license in the 27 countries.
246 days since the entry into force of mica, the card is clear.
Ireland leads with 123 Mica White Bods.
246 days since Mica is put online and our card shows where cryptography launches take … pic.twitter.com/1d7y8wf30p
– Storm Partners (@storm_parters) September 2, 2025
Ireland leads with 123 Mica White Bods.
Germany: 59
Liechtenstein: 36
Malta: 26
Netherlands: 21
France: 7
Spain: 3However, since the deployment of the program, growth has been unequal between the regulator’s courts, for example Ireland has so far received 17.5x the number of cryptographic passports like France.
For companies, the passport mechanism was the price, an effective bridge on the single block market. For regulators like the AMF, however, the last nine months have exposed its fault lines.
European cryptography companies are shopping for weak jurisdictions
Barbat-Layani warned that companies “shopping” for the weakest jurisdictions, obtaining lighter licenses before developing in larger markets such as France. “We do not exclude the possibility of refusing the EU passport,” she told Reuters, comparing the option to an “atomic weapon” which could be deployed if the supervision gaps persist.
The comments arise while France, Italy and Austria jointly call for the European Securities and Markets Authority (ESMA) to assume direct surveillance of large cryptography companies.
In a joint article, the three regulators argued that the early implementation of the Mica revealed “major differences” in the way in which national supervisors interpret and apply the rules. The direct supervision of ESMA, according to them, is essential to protect investors and ensure level playground.
This thrust follows the criticisms that hairded the Malta license diet. In July, an ESMA peers examination revealed that the Malta Financial Services Authority “did not partially meet expectations” only when the crypto supplier, highlighting a poor risk assessment and slow supervision monitoring.
In addition, the report has fueled concerns that smaller courts could become regulatory bridges for companies looking for rapid EU access.
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Are there other reasons why cryptographic companies avoid France?
The regulatory debate with high challenges takes place on a backdrop tense in the cryptographic ecosystem of France. In recent months, a series of violent kidnappings targeting cryptographic entrepreneurs and their families has shaken the industry. French police have linked at least half a dozen attempts to kidnap digital assets for ransics, including incidents in which the victims were mutilated to put pressure on the parents to pay millions.
Security experts warn that some of the new EU declaration requirements can inadvertently so that criminals easier identify the rich objectives.
This double pressure, this regulatory fragmentation at the EU level and the assembly of internal security problems put Paris in a difficult position with the approach of the summer season.
The AMF has spent years courting blockchain startups, marking France as a jurisdiction with clarity and credibility, in particular after having granted the French entity of Binance a license in 2022. But the warning shooting on the Mica passports signals a transition from Promotion to Protection.
The challenges are high for investors and businesses. If France unilaterally refuses to recognize the licenses of other EU states, the single market promise that underlies the mica could fracture before it settles fully.
But it is important to understand that the risk is not only the reputation but the structure: a divergence in the supervision of the EU would mine confidence at a time when world capital weighs if Europe can provide a credible alternative to Trump America.
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