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French regulators announced this week that around 30% of cryptocurrency companies will apply for a MiCA license. This news comes as a key regulatory deadline approaches, which will determine whether these companies can legally continue to operate.
Although the European Union has become the first jurisdiction to create a legal framework for crypto assets, MiCA has faced objections due to its high capital requirements and operational costs.
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France faces a deadline to grant the license
Below Regulation of Markets in Digital Assets (MiCA) In the European Union, cryptocurrency companies must obtain permission from a national regulator to operate within the bloc.
In France, companies have until June 30 to notify regulators if they plan to obtain a MiCA license or end their operations. However, about a third of them could not clarify their intentions.
Speaking to reporters in Paris earlier this week, Stephane Pontuzou, head of the market intermediaries division at the French Financial Markets Authority, said the regulator reached out to companies in November to remind them that the national transition period had come to an end.
According to Reuters, from about 90 Cryptocurrency companies Registered in France and not yet licensed by MiCA, 30% have already applied for permission. Meanwhile, 40% indicated that they have no intention of doing so.
The remaining 30% did not respond to the November letter and did not inform the regulator of their plans.
Request MiCA Authorized by a national regulatory body To provide passport services throughout the Union. If companies miss the deadline, they risk losing the legal right to operate in France or any other EU country.
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EU rules face industry resistance
MiCA became fully operational in December 2024, creating the first comprehensive regulatory framework at regional level For crypto assets Endorsed by great judicial authority. This move put the European Union ahead of its main rivals, Especially the United States.
Although the clarity and uniformity of the regulation has been praised, some industry observers have expressed concerns about the exact terms.
Critics argue that the frame is imposing High compliance and operational costs It disproportionately affects smaller cryptocurrency companies, which could prompt some of them to exit the market or enter into mergers.
Others have reported Stablecoin elements in MiCA As a potential problem. The rules require tight integration with traditional banking infrastructure, a structure that some observers say may favor existing financial institutions over domestic cryptocurrency issuers.
As a result, it sparked reports this week that French cryptocurrency companies will not respond before the June deadline. Questions about attractiveness Work in the European Union.
These pressures may push companies to explore jurisdictions outside the bloc with more flexible regulatory regimes.
