France Ponders Blocking Crypto Companies Utilizing EU Permits due to MiCA Apprehensions
The European Securities and Markets Authority (ESMA) is set to take on a more prominent role in the regulation of larger crypto companies, as several regulatory authorities across Europe have voiced their support for this move. Notable among these are BaFin (Germany), AMF (France), and CONSOB (Italy).
The push for ESMA's direct supervision comes amidst concerns about the issuance of licenses and the lack of uniform oversight, particularly for cross-border operators. The French AMF, in particular, has expressed apprehension that certain licenses may be issued too hastily, potentially leaving regulatory gaps for crypto firms.
The debate surrounding the MiCA regulation in the EU highlights the challenge of balancing national sovereignty with consistent enforcement. The implementation of MiCA has revealed inconsistent application of rules among national regulators, sparking a growing debate.
The AMF's concerns about uneven enforcement of MiCA rules across EU member states could potentially impact the ability of crypto firms to use a single EU license to operate across all member states. In response, the French authorities have suggested that entrusting ESMA with the supervision of large crypto firms would strengthen regulatory consistency across the EU.
Marie-Anne Barbat-Layani, president of the AMF, has accused crypto firms of engaging in regulatory shopping across Europe. In a bold move, France has joined a movement advocating for ESMA to directly supervise large crypto firms, a decision that could reshape how digital assets operate across the EU.
The possibility of rejecting licenses by French regulators is being raised as a means to enforce a more uniform system. The AMF has also mentioned the possibility of contesting the validity of a license granted by another EU member state for use in France.
It's worth noting that the EU's MiCA has already forced Coinbase to end its USDC yield program. This move underscores the increasing regulatory scrutiny being applied to the crypto industry.
As the future of crypto regulation in Europe continues to unfold, it's crucial for investors to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
The Shib Magazine and The Shib Daily, the official media and publications of the Shiba Inu cryptocurrency project, provide valuable insights into the world of crypto. However, readers are reminded to approach all investment decisions with caution and due diligence.
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