French regulators announced this week that around 30% of crypto companies have not yet applied for a MiCA license. The news comes as a key regulatory deadline approaches, which will determine whether these companies can legally continue operating.
Although the European Union became the first jurisdiction to create a legal framework for cryptoassets, MiCA has faced challenges due to its high capital requirements and operational costs.
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France faces licensing deadline
Under the European Union’s Markets in Crypto Assets (MiCA) Regulation, crypto companies must obtain permission from a national regulator to operate across the bloc.
In France, companies have until June 30 to inform regulators if they plan to apply for a MiCA license or cease operations. Yet around a third of them have still not made their intentions clear.
Speaking to reporters in Paris earlier this week, Stéphane Pontoizeau, head of the market intermediaries division at the Financial Markets Authority, said the regulator contacted firms in November to remind them that the national transition period was coming to an end.
According to Reuters, of the approximately 90 crypto companies registered in France that are not yet MiCA approved, 30% have already requested authorization. At the same time, 40% indicated that they did not intend to do so.
The remaining 30% neither responded to the November letter nor communicated their plans to the regulator.
MiCA requires authorization from a national regulator to be able to provide passport services across the bloc. If businesses fail to meet the deadline, they risk losing the legal right to operate in France or any other EU country.
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EU rules face industry pushback
MiCA became fully applicable in December 2024, establishing the first comprehensive region-wide regulatory framework for crypto assets adopted by a major jurisdiction. The move puts the EU ahead of its main rivals, primarily the United States.
Although they have been praised for the clarity and harmonization of the regulations, some industry observers have expressed concerns about the fine print.
Critics argue that the framework imposes high compliance and operating costs that disproportionately affect smaller crypto businesses, potentially forcing some to exit the market or consolidate.
Others have pointed to MiCA’s stable layouts as a potential problem. The rules require tight integration with traditional banking infrastructure, a structure that some observers say could advantage established financial institutions over native crypto issuers.
As a result, reports this week that French crypto companies were not responding by the June deadline raised questions about the attractiveness of operating within the European Union.
These pressures could prompt companies to explore jurisdictions outside the bloc with more flexible regulatory regimes.
