French regulators, specifically the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR), have proposed new requirements for centralized crypto asset service providers (CASPs). The initiative aims to integrate stricter oversight of decentralized finance (DeFi) protocols into the existing European Union regulatory framework.
Under the proposal, platforms would be required to perform mandatory due diligence on any DeFi protocols they offer to customers. This process includes auditing smart contract code, governance structures, and administrative key arrangements. Additionally, the plan suggests that platforms could be held liable for certain customer losses resulting from DeFi activity.
The proposal follows earlier efforts by French authorities, who began developing smart contract certification standards in 2024 and continued these consultations throughout 2025. These discussions align with broader EU concerns regarding DeFi risks, including security vulnerabilities and anti-money laundering gaps, as highlighted in a January 2025 report by the EBA and ESMA.
The regulatory landscape is currently governed by the Markets in Crypto-Assets Regulation (MiCA), or Regulation (EU) 2023/1114. While MiCA established a unified licensing system, it largely excluded fully decentralized services from its initial scope. France's national DASP regime is set to expire on July 1, 2026, transitioning firms to the EU-wide framework.
