MiCA, France considers halting EU passporting: risk of fragmentation for crypto licenses

The possible suspension of passporting by France is putting pressure on the MiCA framework just as the rules for crypto service providers come into effect in the EU.

In a recent statement, the Autorité des Marchés Financiers (AMF) declared “We do not exclude the possibility of refusing the EU passport,” a move internally described as an “atomic weapon” for the market, as reported by Reuters (September 15, 2025).

The hypothesis aims to bridge the asymmetries in the application of the regulation among Member States and to curb the so-called “regulatory shopping”; the operational framework and coordination mechanisms are also described by ESMA MiCA.

What’s at Stake: The MiCA Context and the Passporting Issue

The Markets in Crypto-Assets Regulation (MiCA) – Regulation (EU) 2023/1114 (EUR-Lex) – introduces a single authorization for Crypto-Asset Service Providers (CASP), accompanied by a “passport” valid in all 27 EU countries.

Essentially, an operator authorized in the home state can offer cross-border services upon notification to the authorities of the host states, ensuring harmonized standards and coordinated supervision at the European level. In this context, the predictability of the rules is a pillar for market integration.

According to data and public monitoring produced by authorities and industry analysts, the transitional regime provided by MiCA (up to 18 months for pre-existing authorizations) has created a concentration of applications in certain countries.

Market operators and regulatory observers report that practical divergences particularly concern cybersecurity requirements, disclosure, and resourcing for compliance, elements that justify the debate on stricter coordination at the EU level.

Legal Basis, in Brief

• Authorization and operating conditions for CASP: Title V of MiCA (Reg. EU 2023/1114, EUR-Lex).
• Cross-border performance (“passporting”): notification from the home State to the host States, with the possibility of exceptional interventions in the presence of serious risks to investors, market integrity, or financial stability.
• Role of ESMA: coordination, definition of technical standards, and peer review of national supervision to reduce enforcement gaps (ESMA MiCA).

The French position and the call for more centralized supervision

France, along with Austria and Italy in various European forums, is pushing for more centralized supervision of major crypto platforms.

Specifically, the authorities are calling for greater control over cybersecurity and operational resilience, transparency on activities outside the EU and cross-border flows, as well as a review of procedures for new token issuances, with stricter disclosure profiles.

According to Paris, a more rigorous approach would help avoid arbitrage between Member States where national authorizations are too lenient. That said, the stated goal remains the effective alignment of standards.

MiCA Passporting Mechanism and Conditions for Suspension

Passporting allows a CASP authorized in one Member State to operate in the rest of the EU without having to apply for new local licenses, while still complying with notification and update obligations towards the authorities of the host States.

However, if significant risks or supervisory deficiencies arise, a State can adopt temporary and proportionate measures to limit operations on its territory, in coordination with the lead authority and ESMA.

It should be noted that France has hinted that this leverage might be used selectively until certain application gaps of MiCA are clarified.

Timeline and Deadlines: What to Watch Now

• Stablecoin (ART/EMT): applicable regulations from June 30, 2024, according to the specific provisions’ implementation schedule, with insights on stablecoin.
• CASP: applicable standards from the second part of the regulation effective December 30, 2024.
• Transitional period: art. 143(3) provides for a transitional period until July 1, 2026 (maximum 18 months from the entry into force of the CASP provisions) for operators already active, with possible differences in the timing of full alignment depending on the Member State.

Immediate Impact on the Market

• Possible operational delays in cross-border expansion for operators licensed in States considered to have more “lenient” regulatory regimes.
• Increase in controls by the host authorities on passporting notifications and documentation.
• A more central role for ESMA in the supervision of platforms with greater systemic impact.
• Risk of temporary fragmentation of the single crypto services market, with country-by-country differences in verification phases.

Official Positions Compared

AMF (France)

The AMF, led by Marie-Anne Barbat-Layani, has indicated the possibility of denying the EU passport in targeted cases, describing the option as “very complex” but potentially necessary to avoid arbitrage between jurisdictions, as reported by Reuters. Indeed, for Paris, consistency in enforcement remains a key point.

ESMA

ESMA reiterates the goal of a consistent and harmonized application of MiCA, with the adoption of technical standards, Q&A sessions, and peer reviews to level the quality of national supervision (ESMA newsroom and document register). That said, coordination with national authorities remains the operational cornerstone.

Operators and associations

In the sector, various operators highlight the risk of regulatory uncertainty if each State were to adopt different thresholds of intervention; at the same time, stricter oversight is seen as a lever to strengthen investor confidence and market stability. (Note: recent official statements from operators or associations are needed for a direct quote). 

The Malta dossier and the European peer reviews

The debate has also been fueled by checks on the quality of authorizations in certain jurisdictions. A peer review published by ESMA highlighted that the Maltese authority MFSA has “partially met expectations” in a case of authorization related to the crypto sector, recommending greater diligence in assessing pending issues at the time of authorization and more intense monitoring of applications. Visit the MFSA news site and the ESMA document register for official texts and updates.

What changes for users in France

• Temporary limitations may be imposed on access to services offered by operators with a passport issued in other EU States, until additional checks are completed.
• It will increase transparency on risk disclosures and the protection of client funds, in line with MiCA requirements.
• No impact is expected on the existing rights for operators already compliant and fully authorized according to European standards.

Scenario: what to expect in the coming weeks

• Further clarifications from ESMA on coordination with Member States in case of local restrictive measures.
• Possible guidelines on cybersecurity and extra-EU activities for platforms with greater cross-border impact.
• New checks on authorization practices in States considered “gateways” for entry into the single market.

Transparency notes: the AMF statement mentioned at the beginning was reported by Reuters on September 15, 2025 (link included). The updated key dates are: entry into force of MiCA provisions for CASP on December 30, 2024, application of certain rules for stablecoins from June 30, 2024, and transitional period until July 1, 2026 (art. 143(3)). References to ESMA peer reviews and MFSA documents are linked to their respective official registers for direct consultation.