UK & France Clash Over Crypto License Rules: What It Means for European Crypto Firms

What’s happening now

France is threatening to block crypto firms that are licensed in one EU member country from operating in France if they don’t meet stricter standards. This comes as part of a larger debate over how the MiCA (Markets in Crypto-Assets) regulation is implemented across the European Union. The French regulator AMF says that some firms exploit weaker rules in certain countries (like Malta) to serve customers across Europe, without meeting stricter oversight.

Why this matters to firms and users

• License portability—being able to operate EU-wide with one license—is one of the promised benefits of MiCA. If France blocks passporting in some cases, that raises uncertainty for businesses.
• Firms that assumed they could get a license in one EU state and then serve customers across many could face legal or operational risks.
• Users in France (or firms dealing with French customers) may see services restricted or firms pulled out if those firms don’t comply with local standards.

Key details of the regulatory fight

France’s concerns

• The AMF argues that some countries’ standards for licensing and oversight are too lax.
• They want cybersecurity, financial stability, and consumer protection requirements tightened uniformly across all EU states.

What “passporting” means

Passporting is the ability for a firm licensed in one EU member state to legally provide services across other EU states. For crypto, under MiCA, this means a crypto firm licensed in, say, Malta, could serve customers in France, Germany, Spain, etc.—without getting separate local licenses. France wants conditions that ensure firms meet stronger regulatory standards before they can use passporting.

Impacts and risks

• Firms may need to upgrade their compliance, cybersecurity, or financial disclosures to meet higher French standards.
• Some crypto businesses might have to split operations, register locally, or abandon passporting if their current license doesn’t satisfy stricter jurisdictions.
• Possible delays in launching new services or expanding in France or other countries that push for tighter oversight.

What businesses and users should watch

• If you are a crypto firm with EU reach, check whether your license meets the stricter standards that France (or similar states) will demand.
• Monitor policy updates in France, Germany, and other countries pushing back against lax licenses.
• For users: know where your service is licensed. If you use a platform licensed in a country with weaker oversight, understand the risks (customer protection, security, recourse).

Final insights and practical advice

• Regulatory certainty matters. Firms that proactively raise their standards will be better positioned. Doing so early is safer than waiting until enforcement kicks in.
• Keep compliance transparency strong: audits, cybersecurity testing, clear disclosures help build trust with customers and regulators.
• For users, favor platforms licensed in stricter jurisdictions or with strong local regulation, even if services are a little more expensive—they often reflect higher safety.

Edmilson Dias

Edmilson Dias is the founder of CoinBringer, a site dedicated to educating people about cryptocurrency and helping users navigate the crypto space safely and responsibly. A passionate advocate for digital security and financial education, Edmilson Dias has spent years researching the blockchain ecosystem and translating complex concepts into accessible, practical content for beginners and experienced users alike.With a mission to build a safer and smarter crypto community, he focuses on creating high-quality tutorials, safety tips, and trustworthy insights to empower others in the rapidly evolving world of digital assets.