France is on high alert against "regulatory arbitrage": a threat that could prevent the issuance of cryptocurrency licenses "EU passports".

According to the Smart Finance and Economics APP, the French securities regulatory agency has indicated that it may try to prevent cryptocurrency companies licensed in other EU countries from conducting business domestically. This is aimed at pushing for the transfer of regulatory authority to the central securities regulatory agency of the EU in order to eliminate the regulatory gap risks brought about by regulatory differences among member states.