France proposes stricter rules for stablecoins and crypto platforms under Europe's MiCA regulation, aiming to protect investors and promote euro-based tokens.
French authorities propose stricter crypto rules
French financial regulators have proposed tighter rules for stablecoins and major cryptocurrency platforms as part of Europe's update to the Markets in Crypto-Assets (MiCA) regulation. Their aim is to enhance investor protections and support the development of euro-based tokens.EU compliance for stablecoins
The four French authorities suggest that EU-authorized service providers must not offer services on stablecoins that fail to meet MiCA standards. This recommendation is outlined in their joint statement from October 21 and is part of a proposal to revise European regulations, not a new rule enacted recently.Understanding stablecoins
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being linked to a currency or other asset. For stablecoins to be used in digital transactions, the conditions for reimbursement and the strength of the issuer's reserves must be clearly defined.Multi-emission regulation
The French authorities want to reinforce regulations for stablecoins issued simultaneously in the European Union and third countries, a practice known as "multi-emission." Their proposal includes rule equivalence assessments, cooperation between regulators, and added safeguards for reserves and reimbursement rights.Euro-based stablecoins
Paris supports a greater role for stablecoins denominated in euros and tokenized bank deposits. These could be used for cross-border payments and digital financial operations. The authorities argue that these instruments should be governed by rules more closely aligned with those for traditional payment services and financial products.Role for ESMA
The French contribution also calls for a stronger role for the European Securities and Markets Authority (ESMA) in overseeing major cryptocurrency service providers and groups that combine financial and digital activities. Prudential requirements should be adjusted to reflect the specific risks of each activity.DeFi and staking
The authorities want a framework for decentralized finance (DeFi) that assigns clear responsibilities and ensures proper oversight. They also seek clarity on staking rules, which involve locking up certain cryptocurrencies to earn rewards, as well as rules for lending and borrowing in the crypto space.MiCA implementation and future
The MiCA regulation is already in effect, and the French transitional period for service providers ended on July 1, 2026. Individuals can check the AMF's white list of authorized service providers instead of relying solely on the availability of an app or website in French.European consultation and next steps
The European Commission closed its consultation on September 30, 2026, which will inform its evaluation of MiCA's implementation. If needed, this could lead to a legislative proposal, though the timeline and details of any potential reform are still unclear.
