STORY: France has warned it may try to block some crypto firms licensed in other EU countries from operating domestically.
The head of its financial watchdog told Reuters that it wants oversight transferred to the bloc’s central securities regulator.
The watchdog, known as the AMF, is concerned that crypto companies are seeking out jurisdictions with more lenient licensing standards.
A landmark set of digital asset rules came into force this year.
They allow crypto companies to apply for licenses from individual EU members.
Which they can then use as a “passport” to operate throughout the 27-nation bloc.
The legislation has raised questions about whether some licenses are being granted too quickly.
And whether cross-border firms are being adequately supervised.
At stake is oversight of the multi-trillion-dollar crypto industry.
Global regulators have long warned it could destabilize markets and harm investors if not properly supervised.
France has joined Italy and Austria in calling for the European Securities and Markets Authority to take over supervision of major crypto firms.
That’s according to a position paper seen by Reuters.