France Considering Restrictions on Crypto Companies Utilizing EU Authorizations Due to MiCA Apprehensions
France is pushing for stricter crypto news regulation within the European Union (EU), announcing plans to demand direct supervision of large crypto companies through the European supervisory authority. This move signals a push for increased oversight within the EU crypto market, as France seeks to block crypto firms licensed in other EU countries from operating in France.
The proposed changes come amidst a broader debate on balancing national sovereignty with consistent enforcement across the EU. The MiCA (Markets in Crypto-Assets) regulation, intended to harmonize oversight across the EU, has highlighted the challenges in striking this balance.
French authorities argue that entrusting the European Securities and Markets Authority (ESMA) with regulatory responsibility would strengthen consistency across the EU. However, the possibility of rejecting crypto licenses has also been raised, adding to the uncertainty surrounding the future of crypto discussions debate in Europe.
The EU's MiCA regulation has already had an impact, forcing companies like Coinbase to end their USDC yield program. The ongoing debate and the uncertainty it brings forth are reshaping how digital assets operate across the EU.
Another point of contention is the EU's flagging of Malta's MiCA crypto license. While it's unclear if Shibarium could be next, the growing debate underscores the need for a more uniform system across the EU.
It's important to note that this article is for informational purposes only and should not be construed as financial advice.
Meanwhile, Pavel Durov, the founder of Telegram, has criticized the 'strange' probe into his company, arguing that France has no case. Michaela, on the other hand, has no crypto positions or crypto assets.
As the debate continues, it remains to be seen how the EU will navigate the complexities of crypto regulation, striking a balance between national sovereignty and consistent enforcement. Stay tuned for updates on this developing story.
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