French regulatory authorities announced this week that about 30% of cryptocurrency firms have not yet applied for a MiCA license. This information comes just ahead of an important deadline that will determine whether these firms can legally continue operations.
The European Union was the first to introduce legal frameworks for crypto assets. However, MiCA faced opposition due to high capital requirements and operational costs.
France is facing a final licensing deadline
According to the Markets in Crypto-Assets (MiCA) regulation of the European Union, companies must obtain authorization from the national regulator to operate throughout the block.
In France, companies have until June 30 to inform the regulator whether they intend to apply for a MiCA license or cease operations. However, about one-third of companies have still not declared their plans.
Stéphane Pontoizeau, head of the market intermediaries department at the French supervisory authority, told reporters in Paris that the regulator had contacted companies in November. He reminded them that the national transitional period is coming to an end.
According to Reuters, of about 90 cryptocurrency companies registered in France that do not yet have a MiCA license, 30% have already applied. Meanwhile, 40% have declared that they will not.
The remaining 30% did not respond to the letter from November and have still not provided the regulator with information about their intentions.
MiCA requires authorization from the national regulator to passport services in the EU. If companies miss the deadline, they will lose the right to operate in France and the entire European Union.
EU MiCA regulations are facing resistance from the industry.
MiCA came into effect in December 2024 and introduced the first comprehensive, Europe-wide regulatory framework for crypto assets adopted by the main jurisdiction. This move gave the EU an advantage over rivals like the United States.
Although the new regulations have been praised for their transparency and uniform rules, some industry observers have expressed concerns about the details of the regulations.
Critics argue that the new law imposes high compliance and operational costs that hit smaller cryptocurrency companies the hardest. This could push them out of the market or force them to consolidate.
Others point to MiCA's regulations on stablecoins, which may be problematic. The rules require close integration with traditional banking. Some argue that this gives large financial institutions an advantage at the expense of native cryptocurrency issuers.
As a result, the latest reports about French cryptocurrency companies that are not responding before the June deadline raise questions about the attractiveness of operating in the European Union.
These pressures may prompt companies to seek more flexible regulations outside the EU.
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