Core Viewpoint - The French securities regulator is considering actions to prevent cryptocurrency companies licensed in other EU countries from operating domestically, aiming to centralize regulatory authority within the EU to address regulatory gaps and inconsistencies [1][2]. Regulatory Gaps - The cryptocurrency industry, valued in the trillions, faces significant regulatory scrutiny as global regulators warn of potential market disruptions and investor harm if not properly managed [2]. - France, along with Italy and Austria, has called for the European Securities and Markets Authority (ESMA) to take over the regulation of major cryptocurrency companies, highlighting the need for consistent oversight across the EU [2][3]. Potential Actions - The French Financial Markets Authority (AMF) has indicated it may challenge the "passport" system that allows companies licensed in one EU member state to operate across the EU, referring to this as a "nuclear option" [2]. - AMF's president expressed concerns about the rapid issuance of licenses by some countries and the adequacy of cross-border regulatory oversight [2][3]. Differences in Regulatory Approaches - The initial months of implementing new rules have revealed significant differences in how various national regulators approach cryptocurrency oversight [3]. - Specific examples of regulatory discrepancies include Malta's licensing process, which faced scrutiny for inadequate risk assessment [3]. Calls for Enhanced Regulation - France, Italy, and Austria are advocating for amendments to the Markets in Crypto-Assets Regulation (MiCA) to impose stricter regulations on cryptocurrency companies operating outside the EU, improve cybersecurity oversight, and enhance scrutiny of new token issuance [3]. Support for Centralized Authority - France has long supported granting greater powers to ESMA, which has received backing from its chair, although some EU member states oppose this move [4].

Core Viewpoint - The article discusses the increasing regulatory divergence within the EU regarding cryptocurrency approvals, highlighting concerns over the speed and strictness of approvals in smaller member states like Malta [1] Group 1: Regulatory Framework - The EU's Markets in Crypto-Assets Regulation (MiCA) allows member states to issue licenses for cryptocurrency companies to operate across 27 countries [1] - Some countries are worried about the rapid approval processes, particularly Malta, which has quickly approved licenses for major platforms like OKX and Crypto.com [1] Group 2: Concerns from Regulatory Bodies - The French Financial Markets Authority (AMF) has warned that the lack of direct regulatory power for the European Securities and Markets Authority (ESMA) could lead to "regulatory race to the bottom" [1] - An official noted that the fast approval processes in smaller countries like Malta are under scrutiny by ESMA, with a report on the matter forthcoming [1] Group 3: Malta's Position - The Malta Financial Services Authority claims that its quick approval process is due to years of experience and strict anti-money laundering standards [1]