Overview

The French banking regulator, ACPR, is conducting audits of Binance and other cryptocurrency exchanges as part of its efforts to enhance its authority under the Markets in Crypto-Assets Regulation (MiCA).

Increased Scrutiny on Exchanges

The regulator is reportedly intensifying its Anti-Money Laundering (AML) checks on Binance and other platforms while lobbying for a more significant influence in Europe’s cryptocurrency landscape.

According to a Bloomberg report from Friday, the ACPR is inspecting the compliance of Binance and many other exchanges regarding AML regulations. The report includes insights from unnamed sources indicating that this review process commenced last year and is confidential.

Binance has been directed by the ACPR to improve its risk control measures over the past year. A spokesperson from the firm mentioned to Cointelegraph that engagement with regulators is a continuous aspect of their operations as an AML-registered entity.

The spokesperson elaborated that these inspections are standard regulatory checkpoints, as noted in the reports, indicating that the ACPR is evaluating multiple exchanges concurrently.

These inspections aim to ensure that firms adhere to regulatory measures with particular attention to AML and Counter-Terrorist Financing (CFT) provisions. Following last year’s reviews, Binance was tasked with tightening its compliance protocols.

France’s Ambitions for Regulatory Authority

Recently, France has expressed its intention to take a firmer stance regarding the crypto sector and a willingness to exert more influence in European regulations. In September, the country indicated it might obstruct cryptocurrency firms that operate locally with licenses acquired in other EU member states.

At that time, the AMF raised concerns about potential regulatory inconsistencies stemming from varying standards in the EU, which could undermine the regulatory framework established by MiCA.

Marie-Anne Barbat-Layani, the chair of the AMF, acknowledged that such actions might signify a breach of trust in the European market, yet stated that they reserve this possibility for future consideration.

Call for Unified Oversight

Earlier this month, the Bank of France urged the EU to empower the Paris-based European Securities and Markets Authority (ESMA) with oversight over the cryptocurrency sector. Governor François Villeroy de Galhau cautioned about the risks of inconsistent regulation if reliance is placed solely on national authorities.

The need for cohesive rule enforcement becomes critical amid the fast-paced growth of the crypto industry within the region.

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For further details and commentary by a Binance representative, refer to the full report.