France is considering blocking "passporting" rights for cryptocurrency firms, a move that would prevent companies licensed in one EU country from automatically operating across the bloc. The proposal targets firms that rely on cross-border permission to serve customers without separate national licenses.

Legal experts are divided on whether France can lawfully restrict passporting, but if implemented it could force crypto businesses to obtain individual licenses in each member state, raising costs and regulatory complexity. The decision would reshape how crypto firms structure their European operations.

The episode examines the immediate industry impact and the broader EU challenge of harmonizing crypto rules, highlighting tensions between national enforcement priorities and the need for a consistent, innovation-friendly regulatory framework across Europe.