French authorities have proposed that centralized crypto platforms check the DeFi protocols they connect customers to. Those platforms could also face liability for certain customer losses. The plan is a suggested change to the European Union's crypto rulebook.
French authorities proposed that centralized crypto platforms run checks on the DeFi protocols they route customers to. Under the proposal, those platforms could also face liability for certain customer losses. The plan comes as a suggested change to EU crypto rules.
What France is asking for
The proposal targets crypto asset service providers, or CASPs, the EU's term for regulated, centralized businesses such as exchanges and brokers. The Autorité des Marchés Financiers (AMF), France's markets regulator, and the Autorité de Contrôle Prudentiel et de Résolution (ACPR), its banking and insurance supervisor, lead the consultations behind the push.
The measures under consideration include mandatory due diligence on protocols, possible restrictions on which protocols platforms can offer, and liability for customer losses stemming from DeFi activity. However, none of the frameworks name specific tokens or protocols.
Why MiCA leaves a gap
The backdrop is MiCA, formally Regulation (EU) 2023/1114, which created a single licensing system for crypto service providers across the bloc. MiCA, however, largely left DeFi alone: fully decentralized services sit mostly outside its scope, and the regulation calls for further reports on the sector.
French regulators have worked on the issue for some time. The AMF and ACPR started work on smart contract certification in 2024, and those efforts continued into 2025 alongside public consultations. A January 2025 report from the European Banking Authority and the European Securities and Markets Authority flagged hacks, anti-money laundering weaknesses and gaps in consumer protection in DeFi.
What it means for exchanges and users
The most direct impact would land on centralized platforms. Reviewing a protocol means examining smart contract code, governance structures, admin key arrangements and track records, and mandatory certification would add cost and paperwork. Liability could give platforms an incentive to offer fewer protocols, so the likely result is a smaller menu of DeFi options inside regulated apps.
There is also a risk that some users and projects head to fully decentralized interfaces or offshore services outside EU jurisdiction if centralized platforms pull back. The items to watch are the progress of the AMF and ACPR consultations, any formal EU response, and the forthcoming MiCA-mandated DeFi reports.
Source: Crypto Briefing
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