TLDR
- France has requested that Binance enhance its compliance and risk management systems following detailed inspections.
- The French Prudential Supervision and Resolution Authority conducted on-site reviews of Binance’s operations.
- The inspections are part of France’s effort to align with upcoming European Union crypto regulations.
- Binance stated that such inspections are a regular part of the supervision of regulated entities.
- France, Austria, and Italy are pushing for the European Securities and Markets Authority to oversee major crypto firms.
French regulators have requested that Binance enhance its compliance framework following a formal inspection of the exchange’s operations in France. The on-site checks were conducted by the French Prudential Supervision and Resolution Authority, also known as the ACPR, as part of a more comprehensive evaluation. These reviews are part of ongoing efforts to standardize crypto operations across the European Union.
France Presses Binance Over Regulatory Standards
France has increased its scrutiny of crypto firms operating under its PSAN registration framework. Binance and Coinhouse are among those under review. According to sources, France has requested that Binance upgrade its internal controls.
The ACPR carried out inspections to verify each platform’s anti-money laundering and counter-terrorism financing policies. France aims to identify firms eligible for upcoming EU-wide permits. This step aligns with the European Union’s move toward cross-border regulatory harmonization.
A Bloomberg report confirmed that Binance was among the platforms facing tighter evaluation by France’s financial watchdog. Binance responded, saying inspections are a “standard part of the supervision of regulated entities.” However, France’s ACPR and Coinhouse did not issue comments on the matter.
France Aligns With EU on Crypto Regulation
France is pushing the European Securities and Markets Authority to directly oversee large crypto platforms. This shift follows demands from France, Austria, and Italy for a unified EU supervisory model. France is central to this proposed expansion of oversight.
The EU aims to implement a licensing framework under its Markets in Crypto-Assets Regulation (MiCA). France’s current reviews help determine which firms will transition under these new rules. France has insisted on consistent standards to prevent regulatory loopholes.
Binance’s experience in France could serve as a model for other platforms seeking EU licenses. France aims to ensure that compliance rules are applied equally. Therefore, France is taking strong steps to prepare firms for the upcoming changes.
Binance Faces Global Scrutiny on Compliance
Binance has faced regulatory concerns beyond France. Last year, the U.S. fined Binance $4.3 billion for AML and registration violations. Its founder, Changpeng Zhao, also resigned and was sentenced.
In August, Australian authorities flagged Binance for weak anti-money laundering protocols. Australia demanded new audit measures and improved transaction monitoring. Binance had 28 days to comply.
Although Binance exited Asian markets in 2021, it re-entered through acquisitions, such as South Korea’s Gopax. In Singapore, Binance continued to operate with remote staff despite not holding a local license. France’s move follows a broader global pattern of enforcement actions.
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