France Proposes Tougher Crypto Regulations Amid Widespread Social Unrest
France proposed stricter MiCA crypto regulations to hold regulated platforms accountable for DeFi risks, while nationwide riots erupted over the surging cost of living.
France is facing severe multi-front pressures, balancing violent social protests over the cost of living with a regulatory push to reshape the European cryptocurrency market. On October 21, the French Ministry of Economy, the Financial Markets Authority (AMF), the Central Bank, and banking supervisors jointly proposed amendments to the European Markets in Crypto-Assets (MiCA) regulations.
Expanding Investor Protection in DeFi
The proposed framework seeks to extend investor protection safeguards to scenarios where regulated crypto platforms redirect clients toward decentralized finance (DeFi) services. According to the proposal, crypto asset service providers could bear liability for specific incidents harming consumers if they actively facilitated access to external decentralized protocols.
While fully decentralized services operating without intermediaries currently fall outside the direct scope of MiCA, France aims to establish strict due diligence duties for regulated brokers. Platforms could no longer simply claim that losses occurred on an external protocol if they ignored known security risks or failed to properly vet the services recommended to users.
Social Unrest and Economic Pressures
Simultaneously, French streets have witnessed intense riots during demonstrations against the surging cost of living and deteriorating educational conditions. Paris and several other cities reported smashed storefronts, looted shops, burned vehicles, and violent clashes with law enforcement.
According to reports from international news agencies, hundreds of thousands of citizens participated in nationwide demonstrations, resulting in thousands of police arrests. While the majority marched in protest, violent fringe groups exploited the chaos to loot businesses and destroy public property, exacerbating the political debate surrounding government economic policies.
The dual crises reflect the broader challenge facing France: maintaining financial innovation and public trust during a period of intense economic and social strain.
Looking Ahead
Although the crypto regulation proposal is currently part of an ongoing European consultation rather than enacted law, it signals a major shift for digital asset oversight. As the government grapples with public anger on the streets, it remains determined to ensure that financial modernization does not compromise consumer safety.
