MiCA Regulation Deadline Looms: France’s Critical Crackdown on 90 Unlicensed Crypto Firms

PARIS, France – In a decisive move that signals a tightening regulatory landscape, French authorities have identified 90 cryptocurrency firms operating without the mandatory license under the European Union’s landmark Markets in Crypto-Assets Regulation (MiCA), setting the stage for a potential industry shakeout by July 2025. This enforcement action highlights the growing pains of implementing a unified digital asset framework across 27 member states.

France’s AMF Takes Action on MiCA Compliance

France’s financial watchdog, the Autorité des Marchés Financiers (AMF), has formally flagged dozens of digital asset service providers (DASPs) registered in the country. According to a recent Reuters report, the regulator issued notifications in November 2024, reminding these entities of the fast-approaching deadline. The transitional period for existing firms to gain full authorization concludes on June 30, 2025. Consequently, companies failing to secure a MiCA license by that date must execute an orderly wind-down of their French and EU operations.

Stephane Pontoizeau, a senior AMF executive, revealed concerning response rates from the notified firms. Alarmingly, approximately 30% of the 90 flagged companies have not responded to the regulator’s inquiries regarding their licensing intentions. This silence creates significant uncertainty for their users and the broader market.

Breakdown of Unlicensed Crypto Firms in France

The AMF’s data paints a clear picture of the current compliance landscape. A substantial 40% of the unlicensed firms have explicitly stated they do not intend to apply for a MiCA license. Meanwhile, only 30% have confirmed their applications are in progress. The remaining 30% constitute the non-responsive group. The regulator has not disclosed the names of companies in these categories, leaving market participants to speculate.

Key Statistics on Flagged Firms:

• Total Firms Flagged: 90
• Not Seeking License: 36 firms (40%)
• Application in Progress: 27 firms (30%)
• Unresponsive to AMF: 27 firms (30%)

This situation underscores a critical challenge for MiCA: ensuring a smooth transition from national regimes to a harmonized EU standard without causing excessive market disruption.

Expert Analysis: The Rationale Behind Non-Compliance

Industry analysts point to several reasons for the high rate of non-compliance. Firstly, the cost and operational burden of meeting MiCA’s stringent requirements—including capital, custody, and governance rules—may be prohibitive for smaller startups or firms with niche business models. Secondly, some companies may choose to strategically exit the EU market or restrict their services to jurisdictions with less demanding regulations. Finally, the complexity of the application process itself, which requires extensive documentation and proof of robust internal controls, can be a significant barrier.

The Broader EU Context and Enforcement Challenges

France’s actions occur within a wider European debate on MiCA enforcement. The Paris-based European Securities and Markets Authority (ESMA), the EU’s top financial markets regulator, has consistently warned that non-compliant firms must prepare for closure. In December 2024, ESMA emphasized the need for “orderly wind-down” plans, prioritizing consumer protection during the transition.

Furthermore, a contentious proposal from the European Commission seeks to grant ESMA centralized supervisory powers over major EU crypto firms. While France supports this move for stronger oversight, countries like Malta oppose it, fearing it could stifle innovation and create bureaucratic delays. This tension reflects the ongoing struggle to balance market integrity with competitive growth.

MiCA License Holders in France (Examples):

• CoinShares: The major crypto investment firm obtained its MiCA license from the AMF in July 2024, positioning itself as an early adopter.
• Relai: This Switzerland-based Bitcoin investment app secured its French MiCA license in October 2024, demonstrating the framework’s cross-border applicability.

Implications for the Crypto Industry and Consumers

The impending July deadline carries profound implications. For the industry, it will likely accelerate consolidation, favoring well-capitalized, compliant entities. The exit of numerous firms could temporarily reduce competition but may also enhance overall market stability and investor trust in the long term.

For consumers, the message is clear: they must verify the regulatory status of any crypto service provider. Using an unlicensed platform after the cutoff date exposes users to heightened risks, including potential loss of access to assets if a firm is forced into a sudden shutdown. The AMF and ESMA maintain public registers of authorized entities, which should be the first point of reference for any user.

The Passporting Debate and Regulatory Arbitrage

France has emerged as a vocal critic of potential “regulatory arbitrage” under MiCA’s passporting system. This system allows a firm licensed in one member state to operate across the entire EU. French authorities warn that companies might seek licenses in jurisdictions with perceived lenient standards, undermining the regulation’s harmonizing goal. This concern fuels France’s advocacy for ESMA’s centralized oversight to ensure a consistent, high-level application of the rules bloc-wide.

Conclusion

The crackdown on 90 unlicensed crypto firms by France’s AMF is a pivotal moment for MiCA regulation enforcement. With 40% of these firms not seeking a license and another 30% unresponsive, the EU faces its first major test in transitioning to a regulated crypto market. The success of this framework now hinges on coordinated action between national regulators like the AMF and EU bodies like ESMA to protect consumers while fostering a secure and innovative digital finance ecosystem. The coming months will be critical in shaping the future of cryptocurrency in Europe.

FAQs

Q1: What is the MiCA deadline for crypto firms in France?
The transitional period for existing crypto firms to obtain a full MiCA license ends on June 30, 2025. Non-compliant companies must cease operations by July 2025.

Q2: What happens to a crypto firm that does not get a MiCA license?
Firms without a MiCA license by the deadline must execute an orderly wind-down of their services in France and the broader EU. They cannot legally provide regulated crypto services to EU residents.

Q3: How can I check if my crypto platform is licensed under MiCA?
You should check the official register of the national regulator (like France’s AMF) or the European Securities and Markets Authority (ESMA). These registers list all authorized entities.

Q4: Why would a crypto company choose not to apply for a MiCA license?
Reasons include high compliance costs, a business model incompatible with the strict rules, or a strategic decision to focus on markets outside the European Union.

Q5: What is ‘passporting’ under MiCA?
Passporting allows a crypto firm licensed in one EU member state to offer its services across all 27 member states without needing separate national licenses, promoting a single market for crypto-assets.