Catenaa, Friday, October 10, 2025- France is calling on the European Union to grant the European Securities and Markets Authority (ESMA) direct supervisory authority over major cryptocurrency firms operating across the bloc, aiming to strengthen financial stability and unify crypto regulation.
Bank of France Governor François Villeroy de Galhau emphasized that current rules allowing firms to obtain licenses in one member state and “passport” them across the EU create regulatory gaps and uneven oversight.
Under the EU’s Markets in Crypto-Assets (MiCA) framework, licensed issuers must hold reserves in at least one EU country, yet can issue equivalent tokens abroad.
France argues this multi-issuance model for stablecoins poses systemic risks and calls for tighter controls to prevent market fragmentation.
Villeroy de Galhau highlighted that stricter regulation is needed on cross-border stablecoin issuance to mitigate arbitrage risks during financial stress.
The push comes as the European Commission prepares proposals to transfer direct supervision of crypto firms, stock exchanges, and clearing houses from national authorities to ESMA.
Verena Ross, ESMA chair, noted that consolidating oversight would reduce fragmentation, creating a more integrated and globally competitive European capital market.
ESMA has previously flagged gaps in national licensing, including a review of Malta’s crypto authorization process, which found incomplete compliance with expectations despite adequate staffing and expertise.
Advocates of centralizing oversight argue that consistent supervision across the EU is essential for effective enforcement and to ensure the resilience of digital financial markets.
France’s proposal positions the country as a leading voice in tightening EU crypto regulation, particularly over stablecoins and multi-issuance models.
