The Bank of France has called on the European Union to transfer oversight powers for large cryptocurrency companies to the European Securities and Markets Authority (ESMA). According to the head of the French central bank, François Villeroy de Galhau, this would ensure uniform regulatory standards for the crypto market within the EU.
This is reported by Business • Media
The Need for Unified Regulation of the Crypto Market
During his speech, François Villeroy de Galhau emphasized the importance of transferring supervisory functions to ESMA to strengthen control over the activities of the crypto sector and avoid regulatory arbitrage. Currently, crypto companies can obtain a license in one of the EU member states and operate throughout the Union, which, according to the head of the Bank of France, creates uneven oversight and potential risks to financial stability.
Villeroy also called for strengthening the key EU regulation on digital assets — the MiCA regulation. This document allows for the multi-issuance of stablecoins, meaning that issuers can simultaneously issue identical tokens both within the European Union and outside it, using a single license.
“This regulatory framework needs to be reinforced with stricter regulations on the multi-issuance of the same stablecoin within and outside the EU to reduce arbitrage risks during periods of stress,” Villeroy emphasized.
Risks of Multi-Issuance and the Position of the Crypto Industry
The European Central Bank and the Bank of France are also lobbying for restrictions on the simultaneous issuance of stablecoins within the EU and abroad. This issue could lead to conflict between regulators and companies such as Circle Internet Group Inc. and Paxos Inc., which operate with tokens in multiple jurisdictions.
Circle, one of the leading stablecoin issuers in Europe, issues USDC with a market capitalization of over $76 billion. The company utilizes a multi-issuance model permitted by MiCA and obtained an electronic money license in France last year.
Current regulations require stablecoin issuers to maintain reserves in at least one EU country, even if they simultaneously manage identical tokens outside the Union.
Amid these debates, industry associations of crypto and payment companies have appealed to the European Commission to clearly define its position on the multi-issuance of stablecoins. In a joint letter dated October 6, 2025, addressed to EU Commissioner for Financial Services Mairead McGuinness, organizations — including Blockchain For Europe, the Electronic Money Association, and the Digital Euro Association — warn of the danger of losing competitiveness for Europe.
“Revising this already established principle — the only path for global stablecoins, which account for 99% of the market — poses a risk of Europe falling behind,” the signatories emphasized.
ESMA is expected to become the official regulator of the EU crypto market following the adoption of the relevant initiative by the European Commission. Meanwhile, France is considering the possibility of blocking the activities of certain crypto companies with licenses issued in other EU jurisdictions.