EU regulatory authorities warn: Imminent MiCA application deadline, one-third of French companies have not reported their compliance status

The French Financial Markets Authority (AMF) issued a major warning on January 14th. As the transition deadline for the EU’s cryptocurrency regulation MiCA approaches on June 30th, approximately one-third of crypto companies registered in France have not reported any compliance plans to the regulatory authorities, Reuters reports.

Serious Issues Pointed Out by Regulators

According to Stéphane Pontwazo, Secretary General of the AMF, the status of about 90 registered virtual currency companies is highly polarized. Currently, 30% of these companies have already submitted or plan to submit applications for MiCA licenses. Meanwhile, 40% have decided to hold off on applying and have already reported to the regulators.

The most concerning situation involves the remaining 30% of companies. These companies have not responded to inquiries from the regulatory authorities and have not disclosed any plans for business continuity. The Secretary General emphasized that this lack of transparency poses a significant supervisory challenge.

Options for MiCA Compliance and Regulatory Requirements

After the transition period for MiCA ends, non-licensed companies will be required to implement an “orderly closure plan.” This is a mandatory requirement stipulated by ESMA (European Securities and Markets Authority). In other words, even companies that decide not to obtain a license will be obliged to gradually reduce their operations, considering user protection and market stability.

Some companies have already obtained MiCA licenses. Major players such as Coinbase, Circle, and Revolut have already complied with EU regulations and completed their transition to the new framework.

Future Actions by Regulatory Authorities

With less than six months remaining until the regulatory deadline, authorities across the EU, including the AMF, are preparing to strengthen guidance for non-compliant companies. Particularly, the 30% of companies remaining silent are expected to receive more proactive correction notices moving forward. Improving transparency across the entire cryptocurrency industry and maintaining market order are the top priorities for regulators.