USA vs. Europe, two rooms, two atmospheres… As cryptocurrencies continue to rock financial markets, France is calling on Europe to take action. After all, in the column published in EchoesFrançois Villeroy de Galhau, Governor of the Banque de France, and Marie-Anne Barbat-Layani, President of the Financial Markets Authority (AMF), are sounding the alarm: it is urgent for Europe to take the reins of crypto supervision! Their suggestion? Entrust the supervision of the industry’s giants to the European Securities and Markets Authority (Esma) to guarantee more effective investor protection and strengthen financial security. We are taking inventory.
- France has called on Europe to take urgent measures to oversee the cryptocurrency market, entrusting the task to the European Securities and Markets Authority (Esma).
- The lack of harmonized regulation exposes European investors to significant risks, while almost 90% of cryptocurrency trading is concentrated on a few global platforms.
Cryptocurrencies: Risk Concentration in a Globalized Market
The numbers speak for themselves: almost 90% of global cryptocurrency exchanges are concentrated on around ten platforms. These major players often operate across borders, exposing European investors to sometimes significant risks.
In the absence of harmonized regulation, most transactions are carried out directly online, without guarantees. “This lack of investor protection is troubling,” the two officials stress, pointing to the cross-border and deregulated nature of the crypto market.
Esma at the forefront of European regulation
Moreover, for Marie-Anne Barbat-Layani and François Villeroy de Galhau, the solution is clear: direct supervision of Esma. By entrusting this mission to the European body, regulators hope to strengthen the fight against abuses in the crypto industry, such as money laundering and fraudulent activities.
It should also be noted that the soon-to-be-expected entry into force of the MiCA (Markets in Crypto-Assets) regulation will introduce a common regulatory framework following consultation and review by Esma. But for these experts, it’s just the beginning: a proactive and centralized monitoring remains essential that European laws are applied strictly and uniformly
In addition to simple regulation, the issue of European sovereignty is also at stake, with the AMF and Banque de France warning that crypto-assets can become fertile ground for illegal activities such as money laundering. They also emphasize the importance of subjecting these platforms to external cyber security audits to prevent the risks of hackers and security breaches. A position that seems to be the opposite of Donald Trump-elect.
Trump vs. European measures against cryptocurrencies
In the United States, the prospect of a pro-cryptocurrency policy is taking hold, thanks in part to the influence of political figures such as Donald Trump. Since his return to the political scene, the former president, freshly re-elected, has often suggested that he might favor a more flexible framework for cryptocurrencies, potentially allowing the United States to take advantage and become a Bitcoin country. This American approach stands out for its desire to attract technological innovation and boost the economy through less restrictive frameworks.
For crypto investors and entrepreneurs, Trump embodies this promise of economic freedom, where regulation serves as a safety net without stifling innovation.
On the contrary, the European position, supported by figures such as François Villeroy de Galhau, is more focused on the safety and protection of savers. By prioritizing financial stability and avoiding the risks associated with illegal activities, Europe is taking a cautious stance towards a sector that is often referred to as the financial “Wild West”. The goal is to build robust regulation that could ultimately deter bad actors and strengthen public confidence in crypto-assets.
Two visions, same problem
These two approaches clearly show the regulatory dilemma: while the United States relies on increased competitiveness, Europe promotes the responsible integration of cryptocurrencies into the financial framework. This divergence of strategies raises a fundamental question: will companies and investors prefer the freedom of American markets or the safety of the highly regulated European market? The question remains open.