France has issued a stern warning to the European Union regarding the passporting of crypto licenses, signaling a potential regulatory standoff set for 2025. The French government is concerned about the risks posed by the current EU framework that allows crypto firms licensed in one member state to operate across the bloc without additional scrutiny. This move aims to tighten oversight and ensure that crypto activities comply with stringent national regulations to protect investors and maintain financial stability. The dispute highlights the broader challenges of harmonizing crypto regulations across diverse jurisdictions within the EU, where member states have varying approaches to digital asset governance. France's position underscores the need for a balanced regulatory environment that fosters innovation while mitigating risks associated with cryptocurrencies, such as fraud, money laundering, and market volatility. The potential blockage of license passporting could lead to significant operational hurdles for crypto companies seeking to expand their services across Europe, impacting market dynamics and regulatory cooperation. This development is a critical indicator of the evolving landscape of crypto regulation in Europe, reflecting the tension between national sovereignty and the push for a unified digital finance market. Stakeholders in the crypto industry, regulators, and investors should closely monitor these regulatory debates as they will shape the future of crypto operations and compliance standards in the EU.
This Cyber News was published on www.reuters.com. Publication date: Mon, 15 Sep 2025 21:59:04 +0000