Bank of France pushes EU to grant ESMA direct crypto oversight under MiCA

The Bank of France has doubled down on its call for the European Union to hand supervisory powers over major crypto-asset firms to the European Securities and Markets Authority (ESMA). 

France’s central bank governor François Villeroy de Galhau, speaking at the ACPR-AMF Fintech Forum in Paris on Thursday, said Paris-based ESMA should be granted authority to directly oversee crypto-asset issuers under the EU’s Markets in Crypto-Assets (MiCA) framework. 

“I also advocate, along with the president of the AMF, for European supervision of crypto-asset issuers, carried out by ESMA,” he asserted, claiming centralization would guarantee the EU bloc has a uniform rule enforcement for crypto and AI regulation.

Villeroy de Galhau told attendees that allowing each national regulator to interpret and enforce MiCA individually would cause an unfair advantage for some crypto firms expanding their reach across the continent. 

“The implementation of MiCA is a decisive step forward, but its effectiveness requires a more unified approach if we are to protect European investors and maintain a level playing field,” the central bank governor explained.

AMF warns of ‘regulatory shopping’

MiCA, which came into force earlier this year, allows crypto companies to apply for licenses from national regulators that can be used as “passports” to operate throughout the EU’s 27 member states. 

However, per the French central bank, the framework is inconsistent in how countries grant and supervise licenses, which would see where companies choose jurisdictions with looser standards.

France’s securities watchdog Autorité des Marchés Financiers (AMF) president Marie-Anne Barbat-Layani told Reuters in September that crypto platforms were “doing their regulatory shopping all over Europe, trying to find a weak link that will give them a license with fewer requirements than the others.”

Barbat-Layani warned that France could consider blocking “passporting” rights of firms licensed in other EU countries, Cryptopolitan reported.

“We do not exclude the possibility of refusing the EU passport. It’s very complex legally and not a very good signal for the single market, it’s a bit like the ‘atomic weapon’… but it’s still a possibility we hold in reserve,” she surmised.

The AMF did not disclose which companies might be affected or under what legal grounds the proposed law would be activated.

Central bank governor talks financial sovereignty and US stablecoin threat

In his Paris address, Villeroy de Galhau also talked about the prominence of dollar-backed stablecoins, calling them a “threat to Europe’s monetary independence.” He called MiCA “regulatory weak” for allowing several issuers of the same stablecoin to operate within the European trade bloc.

According to the French financial policymaker, the proliferation of stablecoins issued outside the EU undermines the euro and creates dependency on non-European, unregulated entities. 

“This framework would benefit from much more strictly regulating the multi-issuance of the same stablecoin from and outside the European Union,” he said. “That would reduce the risks of arbitrage in the event of market stress.”

Support from Italy and Austria, retaliation from Malta

France’s position on crypto oversight is supported by Italy and Austria, which have also called for ESMA to take on supervisory responsibilities. The three nations jointly submitted a position paper to the EU earlier this year, telling the commission that central oversight would prevent gaps in enforcement and protect investors.

However, Malta’s Financial Services Authority (MFSA) said it prefers greater coordination between national regulators to centralizing supervision under ESMA. 

“We believe that centralisation at this stage would only introduce an additional layer of bureaucracy, which could hinder efficiency during a period when the EU is actively striving to enhance its competitiveness,” an MFSA spokesperson told Reuters.

ESMA’s peer review, launched in April 2025, found that the MFSA had not adequately assessed the risks when granting a license to an unnamed crypto company. The Maltese regulator defended its regulations and said it was “proud to be an early adopter of digital asset regulation.”

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