France Intensifies Regulatory Scrutiny on Binance and Other Crypto Exchanges
French authorities are ramping up their regulatory efforts on Binance as part of a broader push for greater control over the crypto industry in Europe.
Increased Oversight on Crypto Exchanges
The French banking regulator, ACPR, has begun extensive audits on Binance and other crypto exchanges, reflecting Paris’s ambition to solidify its role in overseeing compliance with the MiCA legislation across Europe.
In a report from Bloomberg on October 17, it was noted that the ACPR is scrutinizing the Anti-Money Laundering (AML) practices of Binance and numerous other platforms, which began last year.
The ACPR urged Binance last year to bolster its risk management practices, confirming that continued collaboration with the regulator is essential for maintaining its AML registration status. A representative from Binance indicated that their ongoing engagement with the ACPR is part of the routine operational procedures.
France’s Regulatory Stance
France is signaling a robust approach towards regulating the crypto sector and is looking to assume a leadership role in European regulation. The Autorité des Marchés Financiers (AMF) expressed concerns in September about potential regulatory inconsistencies stemming from uneven standards within the EU. Consequently, France is contemplating whether to block foreign-licensed crypto companies from operating within its borders.
Marie-Anne Barbat-Layani acknowledged that such measures could significantly undermine trust within European markets, although she suggested it remains a viable option.
The Need for Unified Oversight
Earlier in October, François Villeroy de Galhau emphasized the necessity of granting the European Securities and Markets Authority (ESMA) greater authority over the crypto sector to prevent inconsistent regulatory practices across member states. He voiced concerns that depending solely on national regulators could lead to ineffective enforcement, particularly as the cryptocurrency market continues to rapidly expand.
Figure: ACPR Paris offices. Source: Wikimedia
