AMF forces non-mica cryptos to close by march

The AMF makes a decisive move.

Crypto companies without Mica approval must shut down by March 30, according to the French Financial Markets Authority. This directive applies to all companies operating in France, and it’s non-negotiable. So far, only ten companies have managed to secure this crucial approval. The others? They’re facing serious risks.

The Mica approval has become the crux of the matter. Without it, operating legally in France is impossible. The AMF has already contacted several companies to warn them that the axe is about to fall. The message is clear: comply or close. No gray areas, no exceptions. Crypto startups dragging their feet find themselves cornered. Many didn’t see this coming and are now realizing the magnitude of the challenge. The approval process is proving more complex than anticipated, with strict criteria slowing everything down. Bureaucracy is doing its usual work.

Panic in the sector.

The announcement has caused a real earthquake in the French crypto industry. Company leaders contacted describe it as a “hammer blow” and admit they’re desperately seeking last-minute solutions. Some are even considering relocating their operations outside France. Others are exploring quick partnerships to circumvent the issue, but time is running out fast.

Paris-based Coinhouse is among those working day and night to secure approval. Their teams have intensified efforts and are collaborating directly with the AMF to finalize the application. But nothing is guaranteed. On February 15, the Association for the Development of Digital Assets (ADAN) held an emergency meeting with its members. The goal: to find collective strategies to avoid disaster. ADAN fears forced closures could decimate the French crypto ecosystem. Discussions revolve around mutual support among companies and lobbying authorities.

The group France Fintech is stepping up and requesting an extension from the AMF. Related coverage: Bitcoin MVRV Ratio Drops to March.

According to them, extending the deadline would prevent “major economic disruptions.” The AMF hasn’t budged an inch so far. The authority remains firm: rules are rules, period. The regulation aims to protect consumers and ensure transparency in a still young and volatile sector. No room for sentiment.

KPMG analysts estimate that up to 30% of French crypto companies could be directly affected by the measure. The French cryptocurrency market, valued at several billion euros, could face a major shock. Investors have remained cautious since the February 10 announcement. Several companies have seen their asset values plummet in the aftermath. Uncertainty looms, and markets hate it.

Binance France has recruited a team of legal experts to speed up its compliance process. The French subsidiary of the global crypto giant doesn’t want to take any risks. After several major investors expressed concerns, Binance decided to go all out for Mica approval. Ledger, the digital wallet specialist, says it has submitted all required documents and is now waiting for a response from the AMF.

The law firm Gide Loyrette Nouel is organizing express seminars for its crypto clients.

On February 22, lawyers briefed their clients on the latest regulatory developments and possible implications. Everyone is looking for loopholes, angles to buy time. But the AMF seems to have locked the system down. The Ministry of Finance, under Bruno Le Maire’s leadership, is closely monitoring the situation. Informal meetings have taken place, but no official position has emerged yet. Related coverage: SafeMoon Ex-CEO Gets Eight Years Behind.

Banks are also watching the situation closely. BNP Paribas is reevaluating its partnerships with the affected crypto companies. Access to financing could become more complicated for companies unable to secure approval. It’s a vicious circle: without financing, it’s hard to pay the experts and lawyers needed to obtain approval.

On February 25, an informal meeting between the AMF and struggling companies took place. The authority hasn’t moved on the deadline, but sources close to the discussions suggest it might show some flexibility if significant progress is demonstrated by the end of the month. What that means in concrete terms remains to be seen.

The European Securities and Markets Authority (ESMA) supported the AMF on February 28. The European authority emphasizes the importance of Mica approval for market stability in the European Union. This further increases pressure on non-compliant companies. No help is expected from Brussels.

Crypto exchanges Kraken and Crypto.com have already announced their temporary withdrawal from the French market while awaiting approval. These major platforms prefer to suspend their services rather than risk sanctions. Their departure deprives French users of popular options and reshuffles the sector’s cards.

The Bank of France is closely observing this regulatory purge. The institution believes that cleaning up the crypto market strengthens the credibility of the French financial sector. However, experts worry about the impact on technological innovation. France risks losing talent and capital to more flexible jurisdictions like Dubai or Singapore.