The Bank of France has called on the European Union to empower its markets regulator with direct authority over leading crypto companies, warning that fragmented supervision could undermine the bloc’s financial sovereignty.
Speaking at the ACPR-AMF Fintech Forum in Paris on Thursday, Governor François Villeroy de Galhau urged that the European Securities and Markets Authority (ESMA) be granted the mandate to oversee crypto-asset issuers under the EU’s Markets in Crypto-Assets (MiCA) framework.
“I also advocate, along with the president of the AMF, for European supervision of crypto-asset issuers, carried out by ESMA,” Villeroy de Galhau said, noting that such a move would ensure consistent rule enforcement and minimize risks.
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He cautioned that relying solely on national regulators could lead to uneven oversight across the EU, especially as crypto firms expand rapidly across member states.
Villeroy Warns Against Dollar-Backed Stablecoins, Calls for Unified EU Oversight
Villeroy de Galhau emphasized that giving the Paris-based European Securities and Markets Authority (ESMA) direct oversight would help prevent regulatory arbitrage and ensure that major crypto players face uniform standards across the bloc.
“The implementation of MiCA is a decisive step forward. But its effectiveness requires a more unified approach if we are to protect European investors and maintain a level playing field.”
Villeroy de Galhau
The Bank of France governor also warned about the rising influence of dollar-backed stablecoins, describing them as a growing threat to Europe’s financial autonomy. He highlighted that MiCA’s current provision allowing multiple issuances of the same stablecoin—both inside and outside the EU with only partial reserves—represents a key regulatory gap.
