Upcoming MiCA Deadline Poses Legal Risks for French Crypto Firms

With the MiCA regulatory deadline approaching, approximately 30% of French crypto companies have yet to apply for a license, potentially rendering them illegal.

Regulatory Challenges for French Crypto Firms

The European Union’s Markets in Crypto-Assets (MiCA) regulation mandates that crypto companies secure authorization from national regulators to operate across member states. In France, firms have until June 30 to declare their licensing intentions. Yet, a significant portion remains unresponsive.

Stéphane Pontoizeau, head of the Market Intermediaries Division at France's financial markets authority, emphasized the urgency, noting that firms were reminded in November of the impending deadline. Of the 90 registered companies, only 30% have applied for MiCA authorization, while 40% plan not to, and the remaining 30% have not communicated their plans.

If these companies miss the deadline, they risk losing their legal operational status within the EU.

Industry Pushback Against MiCA

MiCA, effective from December 2024, is the EU’s first comprehensive regulatory framework for crypto-assets, positioning the bloc ahead of competitors like the United States. However, the regulation has been criticized for its costly compliance requirements, which could disproportionately affect smaller firms. The framework's stablecoin provisions, demanding extensive ties with traditional banks, may favor established financial entities over native crypto issuers.

The reluctance of French crypto firms to comply has sparked debate over the EU's regulatory appeal, potentially driving companies to seek more lenient jurisdictions.