MiCA regulation revision: The French authorities publish their joint proposals

The Direction Générale du Trésor (French Treasury), the Autorité des Marchés Financiers (AMF), the Banque de France and the Autorité de Contrôle Prudentiel et de Résolution (French Prudential Supervisory and Resolution Authority, ACPR) have published their joint response to the European Commission's consultation on the revision of the Regulation on markets in crypto-assets (MiCA). In their submission, the French authorities advocate for a framework that fosters innovation and the competitiveness of Europe’s financial sector, while reinforcing investor protection, financial stability and the monetary sovereignty of the Union.

In the view of the French authorities, the growing convergence between crypto-assets and traditional finance does not require merging their legal regimes, which must remain distinct, but rather calls for better coordination and, in the long term, increased convergence between the two frameworks. They recommend streamlining MiCA’s rules and clarifying its boundaries with the legislation governing financial instruments and payment services, particularly when a single activity requires multiple authorisations. A financial instrument must remain fully subject to the financial instruments’ legal framework, regardless of the technology used for its issuance or trading. The same principle should apply to payment instruments.