France Proposes MiCA Reforms Targeting Stablecoins, Crypto Supervision and DeFi

French financial authorities have proposed changes to the European Union’s Markets in Crypto-Assets Regulation (MiCA), seeking clearer rules for stablecoins, stronger supervision of major crypto-asset service providers and additional safeguards for decentralised finance (DeFi).

The joint proposals were published in October 2026 by the French Treasury, the Autorité des Marchés Financiers (AMF), Banque de France and the Autorité de Contrôle Prudentiel et de Résolution (ACPR). They form France’s response to the European Commission’s consultation on reviewing MiCA, which ran from 20 May to 30 September 2026.

The authorities argue that European crypto regulation should support innovation and the competitiveness of the financial sector while maintaining investor protection, financial stability and the monetary sovereignty of the European Union. The proposals are intended to address issues that have emerged as crypto-asset services increasingly overlap with traditional financial products and payment systems.

A central recommendation is to clarify the boundaries between MiCA and the existing legal frameworks governing financial instruments and payment services. The French authorities favour simplifying MiCA requirements and improving coordination where a single business activity could otherwise require multiple authorisations. They emphasise that financial instruments should remain subject to the legislation applicable to them, regardless of whether they are issued or traded using blockchain technology.

The authorities also support the development of euro-denominated stablecoins, known under MiCA as e-money tokens, and tokenised bank deposits. They see potential for these instruments to support cross-border payments and the development of tokenised financial markets. At the same time, they propose explicitly prohibiting EU-authorised crypto-asset service providers from offering services involving stablecoins that do not comply with MiCA requirements.

Another priority is preserving access to global crypto-asset liquidity while maintaining appropriate safeguards. The French authorities propose a framework for the multi-issuance of stablecoins, under which fungible tokens may be issued both within the EU and in third countries. Their proposed approach would rely on assessments of regulatory equivalence, cooperation between supervisory authorities and additional guarantees concerning reserves and redemption rights.

The proposals also call for a stronger role for the European Securities and Markets Authority (ESMA) in supervising significant crypto-asset service providers and crypto conglomerates in relation to their crypto activities. The authorities recommend that prudential requirements be proportionate to the risks involved and that European regulators coordinate their efforts to address unauthorised service providers.

Decentralised finance is another area covered by the proposed reforms. The French authorities support a regulatory framework that allows DeFi projects to develop while establishing clearer responsibilities for intermediaries and appropriate safeguards for users. Their recommendations include proportionate due-diligence obligations and protocol certification, alongside greater clarity on the rules applicable to staking, crypto-asset lending and borrowing.

These proposals reflect regulatory concerns about how responsibilities should be allocated when services operate through decentralised protocols or involve multiple participants. However, the joint response does not establish a universal set of due-diligence requirements for every DeFi protocol, nor does it create immediate new obligations for all providers operating in this area.

For anti-money laundering and counter-terrorist financing (AML/CFT) teams, the proposed changes are relevant to the classification of crypto services, the allocation of compliance responsibilities and the supervision of cross-border activities. Businesses offering several services through a single platform may need to distinguish carefully between crypto-asset services, payment activities and regulated financial instruments, ensuring that each activity is covered by the appropriate legal and authorisation framework.

The recommendations also highlight the importance of understanding how intermediaries operate within decentralised financial arrangements. Where identifiable businesses facilitate transactions or provide access to protocols, their responsibilities may depend on the nature of their activities and the applicable regulatory framework. The final legal treatment of such arrangements will depend on any amendments adopted at EU level.

The French submission is part of a wider European review of MiCA. ESMA and the EU’s Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) have also identified areas where the framework may require clarification, including decentralised finance, staking, lending and borrowing, stablecoins and cross-border supervision.

The French proposals do not themselves amend MiCA or establish a new compliance deadline. Any changes will depend on further consideration by the European Commission and the subsequent EU legislative process. Until amendments are adopted and applicable, crypto-asset businesses must continue to comply with the existing regulatory requirements governing their activities.

By fLEXI tEAM