France DeFi liability proposals published Wednesday would make crypto exchanges responsible for certain customer losses when they offer access to decentralized finance protocols, according to Cointelegraph. The plan, filed as part of a joint response to a European Commission consultation, would require platforms to check DeFi protocols before listing them and to answer for some incidents if they fail to vet the protocols or ignore known security risks.
The proposal matters because the EU's Markets in Crypto-Assets Regulation currently excludes services provided in a fully decentralized manner without intermediaries. France's approach would not try to regulate DeFi protocols directly. Instead, it would extend investor safeguards by placing new duties on the regulated platforms that connect customers to those protocols.
The joint response came from France's Treasury, the Financial Markets Authority, the central bank and the Prudential Supervision and Resolution Authority, Cointelegraph reported. That broad lineup shows the proposal carries weight across both market regulation and banking supervision in France.
What France DeFi liability rules would require
Under the French proposal, crypto-asset service providers would have to vet DeFi protocols before offering access and then monitor them for vulnerabilities and suspicious activity, Cointelegraph reported. The authorities also backed certification of protocols and smart contracts, alongside liability for platforms in certain incidents.
The authorities said the liability should apply where platforms actively helped customers reach DeFi services. “CASPs [crypto-asset service providers] should be liable for certain incidents affecting clients where they actively facilitated access,” they said, according to Cointelegraph.
The obligations would fall most heavily on significant CASPs, while smaller providers would face scaled requirements. Platforms would still be able to connect customers to uncertified protocols if they carried out their own due diligence and gave enhanced risk disclosures, the authorities said.
That structure would give exchanges a compliance path even when a protocol had not been certified. It would also place more responsibility on platforms to identify weaknesses before customers are exposed to them.
Wallets and the limits of certification
France also addressed non-custodial and self-custodial wallets, opposing blanket certification requirements for developers, Cointelegraph reported. Instead, the authorities favored voluntary certification for more advanced wallets that integrate DeFi services.
That position suggests France is trying to draw a line between software providers and regulated intermediaries. The emphasis remains on platforms that actively facilitate access rather than on every tool used to interact with decentralized markets.
The wallet stance fits the broader logic of the proposal. Rather than impose one standard across all parts of the crypto market, France is arguing for duties that rise when a provider plays a more direct role in giving users access to DeFi.
Wider MiCA changes backed by Paris
Beyond DeFi, France supported shifting oversight of significant CASPs away from national watchdogs and toward the European Securities and Markets Authority, according to Cointelegraph. The authorities also said the current MiCA line for identifying significant platforms, set at 15 million average daily active users in the EU, should be lowered.
They also said regulators should weigh factors such as custody assets, business risks and group complexity in determining which platforms belong under ESMA oversight. In addition, France sought a fresh look at MiCA's asset-referenced token category, which applies to tokens built to hold a stable value by referencing assets or combinations of assets.
The authorities noted that no asset-referenced tokens had been authorized under MiCA. They proposed adapting the e-money token framework to cover multicurrency stablecoins instead.
Together, those proposals show that France is not only focused on DeFi access. It is also using the consultation to press for tighter supervision of large platforms and a rethink of how stable-value tokens are categorized under the law.
Why the Commission is reviewing MiCA
The European Commission is reviewing whether MiCA needs updating as crypto markets develop, Cointelegraph reported. Its consultation sought views on activities that sat outside the law's original scope, including DeFi.
The responses will feed into a report to EU lawmakers due by June 30, 2027. That report could include proposals to amend the law, meaning France's submission is an early step in a longer legislative process rather than an immediate rule change.
For now, the French plan is a policy position, not a binding rule. But it gives a clear signal that one of the EU's largest financial regulators wants MiCA revised to reach platforms that serve as gateways to decentralized markets.
A wider debate over who bears responsibility
The French proposal lands as regulators debate how far liability should extend across crypto markets. The Blockchain Association has urged the US Treasury to narrow proposed GENIUS Act rules and to distinguish regulated stablecoin businesses from DeFi software, validators and ordinary secondary-market activity, according to CryptoRank.
The association wants officials to separate businesses that deal directly with customers from infrastructure such as self-custody software and validators. It also argues that enforcement should require genuine knowledge and meaningful assistance, rather than treating ordinary secondary-market activity as evidence of involvement.
Those are advocacy positions, not changes Treasury has adopted. Still, the US debate underscores the same question raised by France's MiCA response: where regulators should draw the line between financial intermediaries and the software around them.
Conclusion
France's proposal would keep DeFi itself outside direct regulation while making regulated exchanges responsible when they actively connect customers to risky protocols. The next concrete step is the European Commission's report to EU lawmakers by June 30, 2027, which could lead to formal amendments to MiCA.
Frequently Asked Questions
What did France propose for crypto exchanges offering DeFi access?
France proposed that crypto exchanges vet DeFi protocols before offering access, monitor them for vulnerabilities and suspicious activity, and face liability for certain customer incidents where they actively facilitated access, according to Cointelegraph.
Would MiCA's rules change immediately because of France's proposal?
No. France submitted its position in response to a European Commission consultation. Those responses will feed into a report to EU lawmakers due by June 30, 2027, and that report could lead to proposed amendments to MiCA.
Does France want all DeFi protocols certified before exchanges can list them?
No. France backed certification of protocols and smart contracts, but exchanges could still offer access to uncertified protocols if they did their own due diligence and gave customers stronger risk disclosures.
What did France say about self-custodial wallets?
French authorities opposed blanket certification requirements for developers of non-custodial or self-custodial wallets. They supported voluntary certification for more advanced wallets that integrate DeFi services.
What other MiCA changes did France support?
France backed moving supervision of significant CASPs to ESMA, lowering the 15 million average daily active user threshold, and reviewing the asset-referenced token category. It also proposed adapting the e-money token framework for multicurrency stablecoins.
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