France proposes DeFi liability rules for crypto platforms in EU MiCA review

Authorities back protocol vetting, certification and wider ESMA oversight of significant platforms

By LineZotpaper

Published21 October 2026

Read Time3 min

French authorities have proposed making crypto-asset service providers liable for certain decentralized finance (DeFi) incidents when platforms actively facilitated access, as part of a push to broaden the European Union's MiCA regulation. The proposals, submitted to a European Commission consultation, would require platforms to vet DeFi protocols, monitor them for vulnerabilities and support certification of protocols and smart contracts.

France wants cryptocurrency platforms to face liability for certain decentralized finance (DeFi) incidents if they fail to vet protocols or ignore known security risks. French authorities published proposals this week to revise the European Union's Markets in Crypto-Assets Regulation (MiCA).

The joint response to a European Commission consultation came from France's Treasury, the Financial Markets Authority (AMF), the central bank and the Prudential Supervision and Resolution Authority (ACPR). "CASPs [crypto-asset service providers] should be liable for certain incidents affecting clients where they actively facilitated access," the authorities said.

MiCA currently excludes crypto services provided in a fully decentralized manner without intermediaries. France's proposal would extend investor safeguards by imposing new duties on regulated platforms that connect customers to DeFi protocols.

Under the plan, platforms would be required to vet DeFi protocols before offering access and monitor them for vulnerabilities and suspicious activity. The authorities backed certification of protocols and smart contracts, along with platform liability for certain incidents. The requirements would apply fully to significant crypto-asset service providers, with obligations scaled for smaller providers. Platforms could still connect customers to uncertified protocols if they conduct their own due diligence and provide enhanced risk disclosures.

On non-custodial and self-custodial wallets, the authorities opposed blanket certification requirements for developers, instead favouring voluntary certification for more advanced wallets that integrate DeFi services.

Beyond DeFi, France backed transferring supervision of significant crypto platforms from national regulators to the European Securities and Markets Authority (ESMA). It proposed lowering MiCA's current threshold of 15 million average daily active users in the EU for identifying significant platforms, and suggested considering custody assets, business risks and group complexity when deciding which platforms should fall under ESMA supervision.

The authorities also called for a review of MiCA's asset-referenced token category, which covers tokens designed to maintain stable value by referencing assets. Noting that no such tokens had been authorised under MiCA, they proposed adapting the e-money token framework to cover multicurrency stablecoins.

The European Commission is reviewing whether MiCA needs updating as crypto markets develop. Responses to its consultation will inform a report to EU lawmakers due by June 30, 2027, which could include proposals to amend the law.

Analysis

Why This Matters

The EU's MiCA framework is a global reference point for crypto regulation, and amendments agreed in Brussels tend to influence rules in other jurisdictions.
DeFi has largely sat outside investor protection rules; this proposal would make regulated platforms a gateway for oversight of a sector with no central intermediaries.
The European Commission's report to EU lawmakers, due by June 30, 2027, will determine whether and how the law changes.

Background

MiCA is the European Union's framework for regulating crypto-assets, covering token issuers and the services that handle crypto. It was drafted before the rapid growth of decentralized finance, and its carve-out for services provided without intermediaries left many DeFi activities outside its scope. The European Commission is now consulting on whether the law should be updated to cover activities that emerged after it was drafted. France's response is one input into that review.

Key Perspectives

French regulators: Argue investor protection should extend to DeFi access. They want platforms to vet protocols, monitor them for vulnerabilities and bear liability for certain incidents where they actively facilitated access, with obligations scaled to size.

Crypto platforms (CASPs): Would carry new compliance duties under the proposal, including due diligence and enhanced risk disclosures when connecting customers to uncertified protocols. Significant platforms could also be moved under ESMA supervision.

DeFi users and developers: French authorities oppose blanket certification for wallet developers, which would limit the burden on non-custodial wallets; only advanced wallets integrating DeFi services would face voluntary certification.

Critics and skeptics: Regulating DeFi is difficult because fully decentralized protocols have no single intermediary to hold accountable, raising questions about how workable platform liability would be in practice and how liability would be assigned when incidents originate on-chain.

What to Watch

The European Commission's report to EU lawmakers, due by June 30, 2027, and any draft amendments to MiCA it contains.
Whether other member states' consultation responses align with France's proposals on ESMA supervision and platform liability.
How the Commission defines "actively facilitated access", a phrase that will determine which platforms are exposed to liability.

Sources

France proposes liability for crypto exchanges offering DeFi access · Cointelegraph.com News

Checked

12 claims in this story checked against 1 source: 11 supported.

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Partly supportedFrance proposes DeFi liability rules for crypto platforms as part of the EU MiCA review.Cointelegraph.com News: ““CASPs [crypto-asset service providers] should be liable for certain incidents affecting clients where they actively facilitated access,” French authorities said.”
SupportedFrench authorities propose liability for certain DeFi incidents when platforms actively facilitated access.Cointelegraph.com News: ““CASPs [crypto-asset service providers] should be liable for certain incidents affecting clients where they actively facilitated access,” French authorities said.”
SupportedFrance wants platforms liable for certain DeFi incidents if they fail to vet protocols or ignore known security risks.Cointelegraph.com News: “France wants cryptocurrency platforms to face liability for certain decentralized finance (DeFi) incidents if they fail to vet protocols or ignore known security risks.”
SupportedThe authorities said, “CASPs [crypto-asset service providers] should be liable for certain incidents affecting clients where they actively facilitated access,”Cointelegraph.com News: ““CASPs [crypto-asset service providers] should be liable for certain incidents affecting clients where they actively facilitated access,” French authorities said.”
SupportedThe proposals were submitted in a joint response to a European Commission consultation by France’s Treasury, AMF, the central bank and ACPR.Cointelegraph.com News: “The joint response to a European Commission consultation came from France’s Treasury, the Financial Markets Authority (AMF), the central bank and the Prudential Supervision and Resolution Authority (ACPR).”
SupportedThe proposed rules would require platforms to vet DeFi protocols and monitor them for vulnerabilities and suspicious activity.Cointelegraph.com News: “French authorities proposed requiring platforms to vet DeFi protocols before offering access and monitor them for vulnerabilities and suspicious activity.”
SupportedFrance backed certification of protocols and smart contracts, with full requirements for significant CASPs and scaled obligations for smaller providers.Cointelegraph.com News: “They also backed certification of protocols and smart contracts, along with platform liability for certain incidents. The requirements would apply fully to significant CASPs, with obligations scaled for smaller providers.”
SupportedPlatforms could connect customers to uncertified protocols if they performed due diligence and provided enhanced risk disclosures.Cointelegraph.com News: “Platforms could still connect customers to uncertified protocols if they conduct their own due diligence and provide enhanced risk disclosures, the authorities said.”
SupportedFrance opposed blanket certification requirements for non-custodial or self-custodial wallet developers and favoured voluntary certification for more advanced wallets integrating DeFi services.Cointelegraph.com News: “The authorities also addressed non-custodial or self-custodial wallets by opposing blanket certification requirements for developers. They favored voluntary certification for more advanced wallets that integrate DeFi services.”
SupportedFrance backed transferring supervision of significant CASPs from national regulators to ESMA and proposed lowering the 15 million average daily active user threshold.Cointelegraph.com News: “France backed plans to transfer supervision of “significant CASPs” from national regulators to the European Securities and Markets Authority (ESMA). The authorities also proposed lowering MiCA’s current threshold of 15 million average daily active users in the EU”
SupportedFrance called for review of MiCA’s asset-referenced token category and proposed adapting the e-money token framework to cover multicurrency stablecoins, noting that no ARTs had been authorised under MiCA.Cointelegraph.com News: “France also called for a review of MiCA’s asset-referenced token (ART) category, which covers tokens designed to maintain a stable value by referencing assets or combinations of assets. The authorities noted that no ARTs had been authorized under MiCA and proposed adapting the e-money token (EMT) framework to cover multicurrency stablecoins.”
SupportedResponses to the European Commission consultation will inform a report to EU lawmakers due by June 30, 2027, which could include proposals to amend MiCA.Cointelegraph.com News: “The responses will inform a report to EU lawmakers due by June 30, 2027 , which could include proposals to amend the law.”