France Proposes Liability for Crypto Platforms That Offer DeFi Access
France's Treasury, AMF, central bank and ACPR propose that crypto platforms vet DeFi protocols and face liability for certain client incidents, as part of a wider set of suggested MiCA changes covering supervision and stablecoins.
French authorities have proposed that crypto platforms be held liable for certain DeFi incidents if they fail to vet protocols or ignore known security risks. The idea is part of a package of suggested changes to the EU's Markets in Crypto-Assets Regulation (MiCA).
The proposals, published on Wednesday, came in a joint response to a European Commission consultation 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,"
That is the position the French authorities set out in the response. Under the plan, platforms would have to vet DeFi protocols before offering access and monitor them for vulnerabilities and suspicious activity. The authorities also back certification of protocols and smart contracts. Requirements would apply fully to significant crypto-asset service providers (CASPs), with obligations scaled for smaller providers.
Platforms could still connect customers to uncertified protocols if they carry out their own due diligence and provide enhanced risk disclosures.
Wallets get lighter treatment. The authorities oppose blanket certification requirements for non-custodial wallet developers and favour voluntary certification for more advanced wallets that integrate DeFi services.
Supervision and stablecoins
The response goes beyond DeFi. France backed moving supervision of significant CASPs from national regulators to ESMA. It proposed lowering MiCA's threshold of 15 million average daily active users for identifying them, and suggested also weighing custody assets, business risks and group complexity.
France also called for a review of MiCA's asset-referenced token category, noting that no such tokens have been authorized under the regulation. It proposed adapting the e-money token framework to cover multicurrency stablecoins.
What comes next
The European Commission is reviewing whether MiCA needs updating. Responses to its consultation will inform a report to EU lawmakers due by June 30, 2027, which could include proposals to amend the law.
MiCA excludes crypto services provided in a fully decentralized manner without intermediaries. The regulation largely left such services outside its scope and called for further reports. The French proposal would instead reach DeFi through the regulated platforms that route customers to it.
The approach carries trade-offs. Liability could give platforms an incentive to offer fewer protocols, producing a smaller, more conservative menu inside regulated apps. The rules could also push users and projects toward fully decentralized interfaces or offshore services outside EU jurisdiction, and due diligence and certification add cost and paperwork.
Regulators elsewhere are also addressing DeFi access. The UK Financial Conduct Authority opened a consultation on DeFi guidance on how firms offering access to DeFi protocols meet existing obligations. That consultation closes November 18, 2026.
