France proposes expanding MiCA regulation, requiring crypto platforms to bear responsibility for certain DeFi events.

On October 21 that, according to Cointelegraph, the French Ministry of Finance, the Financial Markets Authority (AMF), the French Central Bank, and the Prudential Supervision and Resolution Authority (ACPR) jointly proposed amendments to MiCA, advocating for additional obligations for crypto-asset service providers (CASPs) that proactively provide access to DeFi protocols for users.

France recommends that platforms conduct due diligence on relevant protocols prior to offering DeFi access, and continuously monitor for vulnerabilities and suspicious activities; platforms should bear liability for client losses stemming from inadequate review by the platform or disregard for known security risks. Full requirements will apply to large CASPs, while smaller providers may be subject to lighter obligations scaled to their size.

Additionally, France supports transferring regulatory authority over "significant CASPs" from national regulators to the European Securities and Markets Authority (ESMA), and recommends lowering the current threshold for the "significant CASP" designation, which stands at 15 million average daily active users in the EU, while incorporating factors such as custodial asset volume, business risk, and group complexity.

France also recommends revisiting the Asset-Referenced Token (ART) framework under MiCA and considering extending e-Money Token (eMT) rules to cover multi-currency stablecoins.