France is on the verge of a significant regulatory shift. Within the next ten months, companies not yet compliant with the MiCA regulation will face a critical choice: either cease operations or secure European approval. Concerns are growing within the AMF (Autorité des marchés financiers) as several major players have yet to initiate the approval process, while others are engaged in a demanding race against time. The countdown has begun, and the cryptocurrency industry is keenly awaiting the outcome.
In Brief
- •Approximately 90 French crypto companies are currently operating without MiCA licenses, with the deadline ten months away.
- •Binance, despite being registered in France since 2022, has not yet secured its European approval.
- •The AMF is emphasizing the need for greater transparency and intends to exclude companies holding licenses considered insufficiently stringent.
- •The MiCA regulation is poised to fundamentally reshape the French crypto sector, favoring robust and well-capitalized entities.
Binance Faces the MiCA Deadline: France Remains Firm
Binance, a prominent cryptocurrency exchange registered in France since 2022, has yet to obtain its MiCA approval. This situation is emblematic of a broader trend, with nearly 90 companies currently operating under regulatory uncertainty.
According to Stéphane Pontoizeau of the AMF, approximately 30% of companies have submitted their applications, 40% have not yet done so, and 30% have shown no indication of their intentions. The authority has reached out to all affected companies, but some have not yet clarified whether they plan to seek approval or simply discontinue their services. This lack of response is a cause for concern, as companies without a license will be required to cease their operations by June 2026. Binance, recognizing the potential risks, is actively exploring European avenues to expedite its authorization process. However, France is determined to maintain its regulatory integrity and is considering blocking entities that have opted for jurisdictions with less stringent regulations. The message from Paris is unequivocal: crypto regulation must be respected, or companies will need to exit the market.
MiCA: A Balancing Act of Protection and Pressure in the European Crypto Landscape
The Markets in Crypto-Assets Regulation (MiCA), adopted in 2023, represents a landmark development in European crypto regulation. It aims to establish a harmonized framework while imposing stringent requirements on crypto-asset service providers. These obligations include minimum capital requirements, robust governance structures, environmental impact transparency, and the publication of white papers for each asset.
Since December 2024, only authorized Payment Service Providers for Crypto-Assets (PSCA) are permitted to operate. A transitional period is in effect until June 2026, but the deadline is rapidly approaching.
For France, MiCA serves as a crucial mechanism for differentiating between legitimate market participants and speculative ventures. The regulation is designed to prevent future scandals akin to those involving FTX or Terra Luna and to enhance investor protection. However, some observers note that the French implementation of MiCA may be more stringent than that of other European nations. In December, the European Securities and Markets Authority (ESMA) reiterated that non-compliant companies must have an orderly wind-down plan in place before the deadline. Europe is moving towards a more robust regulatory environment, and the industry's response ranges from confidence to apprehension.
Startups: Navigating Survival or Opting for European Exile
In France, only 70 companies have successfully obtained their MiCA approval to date. These include established players such as Deblock, Bitstack, OKX, and Caceis. For many other startups, the path to compliance has been an arduous journey. Crypto startups are facing significant challenges in funding their applications, which involve meeting capital requirements, navigating complex compliance procedures, and undergoing rigorous audits. Consequently, some are exploring the possibility of obtaining approval in other European countries that offer more streamlined administrative processes.
However, the AMF has issued a warning, indicating that it may deny market access to French companies that attempt to circumvent its regulations by seeking approval elsewhere. This firm stance could potentially lead to a loss of domestic innovation. MiCA was conceived to safeguard investors while simultaneously fostering innovation. French crypto players are currently navigating a delicate balance between regulatory rigor and market competitiveness. The market is evolving, and only the most adaptable entities are likely to thrive.
Key Dates and Figures in the MiCA Countdown
- •Ninety companies remain without approval, ten months before the deadline.
- •Only 30% of companies have submitted their applications to the AMF.
- •Seventy companies have already received approval, including Bitstack and Caceis.
- •June 2026 marks the end of the transitional period.
- •The overarching goal is to create a safer and more transparent European market.
With ten months remaining until the deadline, a palpable sense of tension pervades the industry. Some within the Bank of France still consider MiCA to be insufficiently strict and advocate for strengthening the European framework to prevent the emergence of new regulatory loopholes. France, true to its tradition of regulatory stringency, intends to play a significant role in this ongoing debate. The ultimate equilibrium between fostering innovation and ensuring market stability remains to be definitively established.