France is considering blocking some crypto firms licensed in other EU countries to regulate the industry more effectively, citing concerns about uneven licensing standards that could pose risks to investors and markets.

The country is advocating for oversight of the crypto industry to be transferred to ESMA in Paris, following calls from Italy and Austria for a more harmonized approach to supervision. The move comes after the EU’s MiCA regulation allowed firms to operate across the bloc with approval from one member state, potentially leading to inconsistencies and loopholes.

France is willing to challenge the validity of licenses granted elsewhere in the EU, raising questions about the supervision of companies as they expand operations cross-border. The AMF may refuse the EU passport, a drastic step that could impact the principle of passporting in Europe’s single financial market.

The stability of the global crypto industry, valued at trillions of dollars, is at stake as regulators warn of financial instability and harm to retail investors due to inadequate oversight. France and its allies are pushing for ESMA to supervise the largest crypto firms, signaling that national approaches may not be sufficient to address risks effectively.

Read more at Yahoo Finance: France Threatens to Block EU-Licensed Crypto Firms, AMF Pushes for Centralized Oversight: Report