France Seeks MiCA Rewrite to Make Crypto Exchanges Liable for DeFi Access Failures

French financial authorities, including the AMF and Banque de France, have formally proposed that regulated crypto-asset service providers (CASPs) should be held liable for customer losses when they actively facilitate access to decentralized finance (DeFi) protocols. This submission to the European Commission’s MiCA consultation argues that exchanges should perform mandatory due diligence, including smart-contract security assessments and ongoing monitoring, to protect retail users. The proposal suggests a tiered regulatory approach where significant CASPs face stricter oversight, while self-custody wallet developers remain largely exempt from mandatory certification. Furthermore, France advocates for the potential elimination of the Asset-Referenced Token (ART) category, suggesting that multicurrency stablecoins be integrated into the existing e-money token framework due to low adoption. These recommendations aim to bridge the gap between MiCA’s intermediary-focused design and the reality of users accessing DeFi through centralized gateways. If adopted, these measures could fundamentally alter the economics of listing DeFi assets and narrow the permissionless nature of the sector. The European Commission is expected to deliver its formal MiCA review report to lawmakers by June 30, 2027.