France’s warning that can try to prevent cryptocurrency companies from operating in the country under licenses issued by other Member States of the European Union, known as passports, asking questions about the application of the flagship.
The Stock Regulator of France, the authorité financial de marches (AMF), is considering the prohibition of cryptographic companies operating in France under the licenses obtained in other Member States, Reuters reported Monday. The informed movement comes from AMF’s concern that some cryptographic companies seek licenses in the most indulgent EU jurisdictions.
The warning occurs less than a year after EU markets in the regulation of crypto Assels (Mica) entered into force for crypto-active service providers. Mica was designed to create a harmonized framework throughout Europe and avoid the son of regulatory arbitration. The AMF is marking.
While some legal experts see this as against Mica’s regulations, other industry observers believe that it is technically feasible at the expense of significantly legal complexity.
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“Mica was designed to create a harmonized framework and give companies access to a single regulated market throughout the EU. That promise is now under pressure,” according to Marina Markezic, executive director of the European Crypto Initiative (EUCI). “From what we have seen, blocking the passport under Mica is technically possible, he thought it comes with significantly legal complexity.”
Recent position documents highlight “the growing tensions about how Mica should be applied, with national authorities that are divided into key supervision opinions,” he added.
On Monday, France became the third country to ask the European Authority of Securities and Markets (ESMA) based in Paris (ESMA) to take the supervision of the main cryptographic companions, next to Austria and Italy, according to a position document seen by Reuters journalists.
Cointelegraph contacted the ESMA but had not received an answer by publication.
Some of these proposals “require legislative changes to the Mica itself”, which “would travel political negotiations and potentially provide new uncertainty to the industry,” Markezic said.
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Block the encryption license “Passorting” goes against Mica
Other legal experts see the threat of AMF as legally unfeasible under the Mica regime. “Legally, the AMF cannot block an entity duly graduated in Mica-of operating in France,” according to Edwin Mata, lawyer and co-founder and CEO of the Brickken Assets Token Platform.
“The AMF can monitor behavior, raise supervision conerns and increase cases to ESMA, but cannot impose unilateral barriers,” for license colleagues from any Member State, Mata said, and added:
“Mica is a regulation, not a directive, which means applies directly and evenly in all member states.”
The courier of the French security regulator is more a “warning” that indicates that France “will analyze whether companies try to structure products under mica when they live the house, in fact, it is divided into my MiFid II,” said Matanive) Tree Iis Teverencid) Tree II, Securities Markets.
The main challenge for regulators is to ensure that cryptographic companies do not take advantage of the “lighter regimes” for financial instruments that should be classified as values, Mata added.
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