France, Austria, Italy Call for Tighter EU Crypto Regulation Under MiCA

Market regulators from France, Austria, and Italy are urging the European Union to enhance its crypto regulation approach due to inconsistencies in applying the MiCA legislation. These discrepancies could expose investors to risks outside the current rules.

The French AMF, Austrian FMA, and Italian Consob noted significant differences in national supervisors' application of MiCA.
Concerns include firms potentially selecting jurisdictions with lenient enforcement, affecting investor protection and Europe's digital asset competitiveness.
Proposals include:
- Granting ESMA direct supervision of major crypto-asset service providers
- Closing loopholes that allow routing orders to offshore platforms not governed by MiCA
- Requiring independent cybersecurity audits before issuing or renewing MiCA licenses
- Creating a centralized filing system for token white papers to improve cross-border offerings
The regulators emphasize the need for quick amendments to align with international standards by bodies like the Financial Stability Board and IOSCO.
Lack of adjustments could force national regulators into emergency actions, potentially disrupting Europe's digital asset market.