The French crypto industry is once again in the spotlight. Reuters reveals that France is once again at the heart of European crypto debate, indicating that it could move to block licensed companies in other EU jurisdictions from operating within the country.

The regulatory warning issued on Monday by Marie-Anne Barbat-Layani, Chairman of the Autorité des Marchés Financiers (AMF), highlights the deep fractures already manifested in the European Union’s groundbreaking market in the European Union’s Crypto Asset Regulation (MICA).

MICA, officially enacted by service providers in December 2024, was billed as the world’s first comprehensive digital asset rulebook.

This framework allows crypto companies to obtain permits in one member country and “passport” their licenses in all 27 countries.

The map is clear 246 days after MICA came into effect.

He leads with Areland 123’s Mica white paper.
Germany: 59
RieChtenstein: 36
Malta: 26
Netherlands: 21
France: 7
Spain: 3

246 days after Mica went live, our map shows where the code launches are taking place… pic.twitter.com/1d7y8wf30p

– Storm Partners (@storm_partners) September 2, 2025

However, since the scheme was rolled out, Ireland, for example, has so far received 17.5 times the number of crypto-passports as France.

For businesses, the passport mechanism is an award and an efficient gateway to the block’s single market. However, regulators like the AMF have made fault lines public for the past nine months.

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Barbat-Layani warned that companies are already “shopping” for their weakest jurisdictions, and have secured light touch licenses before expanding to larger markets such as France. “The possibility of denying an EU passport is not ruled out,” she told Reuters, comparing the option to “atomic weapons” that can be deployed if the director gap continues.

This comment is because France, Italy and Austria jointly seek the European Securities and Markets Agency (ESMA) to envisage direct surveillance of major crypto companies.

In a joint paper, three regulators argued that the implementation of the early MICA revealed a “major difference” in the way national supervisors interpret and enforce rules. They argue that the direct ESMA oversight they argue is essential to protect investors and ensure a level playing field.

That push follows stinging criticism of Malta’s licensing regime. In July, in a peer review of the ESMA, the Malta Financial Services Agency found that it “partially met expectations” when approving the crypto provider, highlighting a decline in risk assessments and slow follow-up of supervision.

Additionally, the report has encouraged concerns that smaller jurisdictions could become regulatory gateways for businesses seeking rapid EU access.

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Are there other reasons why crypto companies are escheating France?

The regulatory debate of the high stakes unfolds against the tense background in France’s own crypto ecosystem. Over the past few months, a series of violent intrigues targeting crypto entrepreneurs and their families has rattled the industry. French police have attempted to acquiring at least half a dozen of them to demand ransom for digital assets, including cases in which victims were cut off to put pressure on millions of payments.

Security experts warn that some of the new EU reporting requirements could make it easier for criminals to identify wealthy targets.

This double pressure, fragmentation of regulations at the EU level and rising domestic security concerns have put Paris in a difficult position as the summer season approaches.

AMF has spent years on blockchain startups that brand France as a jurisdiction of clarity and reliability, especially after granting a license to Binance’s French organization in 2022.

The interests are high for investors and businesses. If France unilaterally refuses to recognize licenses from other EU states, the single market promises supporting MICA could break before they become fully established.

However, it is important to understand that risk is not just reputation but structural. The divergence of EU oversight will undermine confidence at the moment Europe is considering whether Trump can provide a reliable alternative to America.

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Kraken currently lives in all 30 European Economic Area (EEA) countries under the Crypto-Assets Regulation (MICA) licensed market. This is an important milestone that provides secure and compliant cryptography to millions of people in Europe.

Today, all EEA clients are directly serviced by Kraken’s MICA-regulated entities approved by the Central Bank of Ireland. This GoLive represents the full activation of MICA licenses, allowing services to be provided throughout the region under a single, unified regulatory framework.

MICA has implemented consistent standards throughout the EU for consumer protection, operational transparency and regulatory oversight. We provide Kraken clients with an additional assurance that the platform they trust operates in accordance with one of the world’s most robust cryptographic regulations.

This is what it means for Kraken clients across the EEA.

Regulatory Service Passport across all 30 EEA countries
Access to over 450 digital assetsthere is a continuous expansion
Fast and easy onboarding Local financial support
Facility-grade trading servicesIncludes OTC
EU-wide protection under MICA For greater transparency and security

This expansion is based on Kraken’s broader regulatory foundation in Europe. While MIFID licenses allow you to provide regulated derivatives to senior traders across the EU market, EMI licenses support FIAT-related services and payments across the region.

Together, these licenses allow Kraken to provide a fully regulated experience with consistency and confidence throughout the EU.

We are excited to serve European clients under MICA and continue to build the safest, innovative and reliable platform in the industry.

Despite initial concerns about its effect on the European crypto industry, the Markets in Crypto-Assets (MiCA) regulation is proving a benefit to crypto customers and exchanges alike.

The EU’s first regulatory package concerning cryptocurrencies has been in effect for almost 200 days, and since then, a number of prominent exchanges has set up operations on the continent.

In its first two quarters of operation, MiCA has shirked critics’ expectations that it would “destroy” the European crypto industry by overburdening exchanges with regulations and requiring users to identify themselves to stay on regulated platforms. 

Rather, the regulatory regime is set to consolidate the European crypto industry and serve as a catalyst for investor adoption.

How crypto companies benefit from MiCA

There are challenges to MiCA compliance for cryptocurrency firms. Firstly, MiCA is a relatively new law, and there is no guidebook for how to ensure compliance, which can lead to uncertainty during the application process, said Bybit EU managing director Mazurka Chen at a July 10 press conference.

Secondly, there is the expense. It takes a significant amount of time, effort and money to ensure compliance, which is a cost more easily borne by large, established companies.

Exchanges that are less able to bear that expense or view the MiCA ramp-up as “regulatory theater,” per Dante Disparte and Patrick Hansen — respectively the chief strategy officer and director of EU strategy and policy at Circle — may be forced to leave the market. 

This may be a windfall for responsible local actors, according to the Circle executives. “MiCA represents an opportunity […] to grow a uniquely European crypto asset market.”

Related: What is Markets in Crypto-Assets (MiCA)?

For stablecoin issuers, this means that non-EU-related products will vanish, leaving a gap and significant demand for MiCA-ready products to close the gap, stimulating, rather than dampening, the local stablecoin ecosystem. 

For exchanges, the bigger fish could gobble up the smaller ones, increasing market share. OKX Europe CEO Erald Ghoos previously told Cointelegraph that such a consolidation will separate “serious market players from unlicensed actors and [drive] healthy, trust-based competition.”

Another MiCA benefit for crypto companies is the relatively equal legal footing they are on compared with traditional banks and asset trading services like eToro.

According to Georg Harer, managing director and head of global compliance at Bybit EU, MiCA-regulated firms have the same Anti-Money Laundering (AML) standards as major banks, so “there is no reason not to work with the MiCA license company anymore.”

How MiCA benefits European crypto investors

This more equal footing with traditional financial institutions also has knock-on effects for customers, such as easier bank transfers, broader institutional access and stronger protections for client assets.

“With the license, we can onboard directly, and the client will be able to make deposits and withdrawals very easily from their own bank,” Bybit CEO Ben Zhou told Cointelegraph. “Then also, you have family offices, different types of trading institutions that can onboard on to us now because previously, maybe they were concerned about the licensing issues.” 

Licensing also lets exchanges expand their offerings. With MiCA and the Markets in Financial Instruments Directive (MiFID), crypto exchanges can trade in traditional assets such as stocks and commodities, providing more familiar asset offerings for customers. 

Many of the provisions outlined in MiCA relate to investor protection and market integrity. Exchanges are subject to rigorous reporting and consumer protection requirements. 

Related: Malta’s MiCA licensing comes under scrutiny from EU regulator

While this undoubtedly increases the regulatory burden on cryptocurrency exchanges, it also provides familiar guardrails for investors concerned about entering the cryptocurrency space. Harer said that the most important benefit for customers of MiCA-regulated entities is these protections. 

These include “the strict safeguarding of clients, assets and funds. You may remember FTX and others, where they reported that they had billions and billions in clients’ assets. And then, when somebody looked closely, it turned out that it was a lie or they were misused. This is now very, very strictly regulated.”

More crypto exchanges are applying for a MiCA license

Major American exchange Coinbase secured a MiCA license on June 20, with OKX and Bybit receiving theirs a week later.

Zhou said the growing number of exchanges on the continent is “an extremely positive trend.”

MiCA also has the potential to influence other regulators. Zhou said, “A lot of the regulators are waiting for MiCA. And you see the new framework being kind of borrowed or copied across the world.”

As more exchanges enter the European market, competition is expected to intensify. Other regions are taking notice and moving to establish comparable crypto regulatory frameworks, as both customers and service providers gravitate toward jurisdictions with clear regulatory guardrails.

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]]> https://earlybirdsinvest.com/mica-a-blessing-in-disguise-for-eu-crypto-investors-and-exchanges/feed/ 0 47784 https://earlybirdsinvest.com/europes-crypto-map-shifts-mica-spurs-14-stablecoin-issuers-39-casps-and-counting/ https://earlybirdsinvest.com/europes-crypto-map-shifts-mica-spurs-14-stablecoin-issuers-39-casps-and-counting/#respond Sun, 13 Jul 2025 17:15:59 +0000 https://earlybirdsinvest.com/europes-crypto-map-shifts-mica-spurs-14-stablecoin-issuers-39-casps-and-counting/

Bitvavo is the latest crypto exchange to receive a Markets in Crypto Assets License from the Dutch Authority for the Financial Markets (AFM) to operate across the 30 nations in the European Economic Area.

Crypto companies have been applying for the licenses since the regulatory regime came into force in December last year. MiCA, which came into force in 2023 harmonizes rules across the European Union’s bloc of 27 nations plus Iceland, Norway and Liechtenstein.

The Netherlands also awarded licenses to four exchanges in December last year, as the rules took effect. Other exchanges like OKX, Crypto.com and Bitpanda secured a MiCA license from Malta. Kraken was awarded a license on Thursday from Ireland, Coinbase was awarded a MiCA license from Luxembourg in June and Bybit was awarded an EU license from Austria in May.

“This license provides clarity, confidence and enables Bitvavo to fulfil its ambition: to become the leading digital asset trading platform in Europe,” said Mark Nuvelstijn, CEO and co-founder of Bitvavo, in a statement.

Bitvavo, which is the largest player globally in the EUR spot market, already held registrations in France, Austria, Italy and Spain, in addition to the Netherlands, the company’s release said.

We are excited to announce that Kraken has secured a crypto-deduction regulation (MICA) license from the Central Bank of Ireland (CBI) based on the European Union market.

This marks a pivotal milestone in Europe’s expansion, unlocking the ability to scale faster across the region by providing regulated services and directly engaging clients in all 30 EEA countries.

“Along with securing a license from the Central Bank of Ireland, which has a long legacy and experience as a strict financial regulator, it is not just about compliance, but it is a strong signal of Kraken’s commitment to expanding crypto ecosystems through responsible innovation.

“Being the first major global crypto platform licensed by the CBI, we confirm that we affirm Kraken’s commitment to building it in the long run. Trust is the most valuable currency in crypto, and over the past few years we have worked tirelessly to meet CBI’s gold standard expectations. Our secure, accessible, fully regulated cryptographic services service serves millions of people across the EU.”

“We are deeply grateful for the professionalism of the Central Bank of Ireland and the consistent support of the Irish government and IDA. This collaboration is a blueprint for how the public and private sectors can work together to build a safer and more innovative financial future for Europe.

Expanding a strong foundation

Kraken already has Virtual Asset Service Provider (VASP) registrations in major European markets such as Ireland, Belgium, France, Italy, the Netherlands, Poland and Spain. We were the main force in euro-denominated crypto trading, which introduced the first BTC/EUR trading pair in 2013. Today, Kraken’s platform is most liquid and trusted in euro trading, reflecting the region’s deep roots.

Alongside MIFID licenses, where MIFID and EMI licenses are now protected by groups, Kraken is able to extend its regulated services to millions of clients across the EU. Together, these licenses support great growth opportunities across retail, professional and institutional client segments, including spot trading, derivatives, and payments.

For clients, MICA offers additional assurance that Kraken’s services will comply with a consistent set of EU-wide regulatory standards, including stronger consumer protection, greater transparency and robust surveillance, such as enhanced consumer protection, greater transparency and robust surveillance, for Craken to strengthen long-term trust over the long term.

Kraken has become the first major global crypto exchange to secure a full Markets in Crypto-Assets (MiCA) license through the Central Bank of Ireland, enabling the company to offer regulated digital asset services across all 30 European Economic Area (EEA) countries.

The license, granted June 26, positions Kraken ahead of the European Union’s year-end MiCA compliance deadline for crypto asset service providers.

The license grants authorization for all seven regulated crypto activities under MiCA, including custody, trading, portfolio management, and payments. It folds Kraken’s existing virtual asset service provider (VASP) registrations in France, Italy, Spain, and the Netherlands under a single regulatory umbrella.

Per Kraken’s announcement, the approval establishes the firm’s legal basis to continue operating across the bloc amid MiCA’s provisions on crypto exchanges.

MiCA, enacted in June 2023, establishes the EU’s first comprehensive regulatory framework for digital assets. It provides a unified set of rules replacing 27 national systems. While its stablecoin provisions took effect June 30, 2024, core exchange and custodial rules became binding at the end of last year. Crypto firms that failed to obtain authorization faced a sunset period through July 2026, depending on local transpositions.

Kraken’s license arrives just days after Coinbase secured its own MiCA license via Luxembourg’s Commission de Surveillance du Secteur Financier. The timing highlights an accelerated push by major U.S. exchanges to lock in regulatory clarity within Europe, even though SEC-driven clarity has emerged at home. The pair’s approvals should yield strategic advantages, including passporting rights, streamlined onboarding, and market access ahead of a competitive backlog.

Kraken’s European business already accounts for roughly 25 percent of its global spot volume. The same update cited over 35 percent of euro-denominated crypto liquidity flowing through Kraken, metrics that likely informed the firm’s regulatory roadmap.

In 2024, Kraken denied phasing out five stablecoins, including Tether’s USDT, from EEA users to preemptively align Kraken’s offerings with MiCA’s stablecoin rules, which prohibit unauthorized issuers and limit exposure thresholds. However, by February 2025, this had changed, and non-MiCA-compliant stablecoins were delisted and converted in March.

In parallel, Kraken also acquired a Cyprus-based entity to secure a Markets in Financial Instruments Directive (MiFID) license, giving the firm permission to offer regulated crypto derivatives in the EU. That license, announced February 3, enables Kraken to provide futures and margin products under investment firm rules, placing it among a small cohort of exchanges targeting both spot and derivatives markets under compliant frameworks.

While Kraken’s MiCA license formally unlocks passporting rights, those rights are activated only once the Central Bank of Ireland uploads the authorization to the European Securities and Markets Authority’s (ESMA) central CASP register. The timing of that upload could vary. Meanwhile, some national regulators may impose additional anti-money laundering checks, which could introduce local onboarding frictions even under the harmonized regime.

Regulatory clarity around crypto activities is gaining traction as MiCA’s sunsetting period comes to a close. ESMA has called on crypto firms to delist non-compliant tokens and prepare for robust technical standards expected to evolve through 2025. For exchanges like Kraken and Coinbase, securing a MiCA license early may limit future disruptions, ease institutional onboarding, and offer stable legal ground for expansion.

The firm’s co-CEO Arjun Sethi said the license “affirms Kraken’s commitment to building for the long term,” adding that it “places us in a strong position to expand our product offering.”

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Coinbase, the largest US-based exchange, has taken a major step in its global expansion by securing approval under the European Union’s Markets in Crypto-Assets (MiCA) regulation, according to a June 20 statement.

The exchange confirmed that Luxembourg’s financial watchdog, the Commission de Surveillance du Secteur Financier (CSSF), granted it the necessary license to operate across the EU.

This regulatory green light means Coinbase can now legally offer crypto services in all 27 EU member states.

Coinbase chief policy officer Faryar Shirzad said:

“Coinbase is now licensed to operate across all 27 member states of the EU! The securing of our MICA license is a massive step forward for our business in Europe.”

Coinbase CEO Brian Armstrong met with Luxembourg Prime Minister Luc Frieden and other government officials to mark the milestone.

MiCA was designed to establish a unified set of rules for digital assets across the European Union. The framework aims to protect consumers, ensure compliance, and reduce regional regulatory fragmentation.

With the MiCA framework now in effect, the approval marks a turning point in Coinbase’s European strategy, prompting the firm to shift its regional headquarters from Ireland to Luxembourg.

The exchange’s registration under this new system positions it as the first American crypto exchange to receive formal MiCA recognition. The move helps it to join a list that includes global competitors like OKX, Bybit, and Crypto.com, who have secured the licensing.

Coinbase’s decision to anchor its European presence in Luxembourg reflects the country’s forward-leaning stance on digital innovation.

According to Coinbase, Luxembourg is a strategic jurisdiction that balances innovation with regulatory maturity. The exchange noted that the country has passed four blockchain-related laws in recent years and continues to lead digital finance policy efforts at the national level.

Considering this, Coinbase said:

“MiCA lays the foundation for a thriving crypto ecosystem, it’s equally important that policymakers continue to drive swift and ambitious initiatives to maintain Europe’s competitive edge on the global stage. The CSSF has set a high standard, and we hope to see this spirit replicated across the region.”

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