French regulators announced this week that roughly 30% of crypto companies have not yet applied for a MiCA license. The news comes as a key regulatory deadline approaches, one that will decide whether these firms can legally continue operating.
Though the European Union became the first jurisdiction to create a legal framework for crypto-assets, MiCA has faced pushback over its steep capital requirements and operational costs.
France Faces Licensing Deadline
Under the European Union’s Markets in Crypto-Assets (MiCA) regulation, crypto firms must obtain authorization from a national regulator to operate across the bloc.
In France, companies have until June 30 to notify regulators whether they plan to seek a MiCA licence or wind down their operations. Yet around one-third have still failed to make their intentions clear.
Speaking to journalists in Paris earlier this week, Stéphane Pontoizeau, head of the Market Intermediaries Division at France’s financial markets authority, said the regulator had contacted firms in November to remind them that the national transition period was nearing its end.
According to Reuters, of the roughly 90 crypto companies registered in France that are not yet MiCA-licensed, 30% have already applied for authorization. Meanwhile, 40% have indicated they do not intend to do so.
The remaining 30% have neither responded to the November letter nor communicated their plans to the regulator.
MiCA requires authorization from a national regulator to passport services throughout the bloc. If the firms miss the deadline, they risk losing the legal right to operate in France or in any other EU country.
EU Rules Face Industry Pushback
MiCA became fully applicable in December 2024, establishing the first comprehensive, region-wide regulatory framework for crypto assets adopted by a major jurisdiction. The move put the EU ahead of key rivals, mainly the United States.
Despite being hailed for regulatory clarity and harmonization, certain industry observers raised concerns over its fine print.
Critics argue that the framework imposes steep compliance and operational costs that disproportionately affect smaller crypto firms, potentially forcing some out of the market or into consolidation.
MiCA sets a high standard for regulatory clarity and responsible innovation, positioning Europe as a leader in crypto oversight. The requirement for 60% of stablecoin reserves to be held in low-risk, bank-held assets while banning interest payments is a bold move to prioritize…
— Frederik Gregaard (@F_Gregaard) January 6, 2025
Others have pointed to MiCA’s stablecoin provisions as a potential issue. The rules require close integration with traditional banking infrastructure, a structure some observers say could advantage established financial institutions over native crypto issuers.
As a result, this week’s reports about French crypto firms remaining unresponsive ahead of the June deadline have raised questions about the attractiveness of operating within the European Union.
These pressures could prompt firms to explore jurisdictions outside the bloc with more flexible regulatory regimes.
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