France Proposes Accountability for Crypto Platforms in DeFi Events

The French Ministry of Finance, the French Financial Markets Authority, the Banque de France, and the French Prudential Supervision and Resolution Authority have jointly released a proposal in response to the public consultation on the revision of the EU's Markets in Crypto-Assets Regulation (MiCA). The proposal requires crypto asset service providers to conduct reviews before offering access to DeFi protocols for clients and to continuously monitor vulnerabilities and suspicious activities. If a platform proactively provides access, it must be held accountable for events affecting clients. The proposal also supports the certification of DeFi protocols and smart contracts, requiring it to apply to significant service providers, while smaller providers will be subject to proportional requirements. Platforms may access unverified protocols under the premise of due diligence and risk disclosure. For non-custodial wallets, French authorities oppose a one-size-fits-all certification requirement and support voluntary certification for advanced wallets that integrate DeFi services. Additionally, France proposes transferring regulatory authority over significant service providers to the European Securities and Markets Authority and lowering the daily active user threshold for MiCA's designation of significant service providers from 15 million, while considering custodial assets, business risks, and group complexity. France also calls for a review of the asset reference token categories under MiCA and suggests adjusting the electronic money token framework to cover multi-currency stablecoins. The European Commission will submit a report to EU lawmakers by June 30, 2027, based on the consultation results, which may include proposals for revising MiCA.

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