France Intensifies Scrutiny of Binance and Other Crypto Exchanges
France’s banking regulator is ramping up Anti-Money Laundering (AML) inspections on Binance and other cryptocurrency exchanges as Paris pushes for greater oversight of Europe’s crypto market under the Markets in Crypto-Assets Regulation (MiCA).
A Friday Bloomberg report cited anonymous sources indicating that the French Prudential Supervision and Resolution Authority (ACPR) has been conducting confidential AML checks on Binance and “dozens of exchanges” since last year.
Binance, in particular, was reportedly instructed to enhance its risk controls during last year’s inspections. While the company had not responded to Cointelegraph’s request for comment, Bloomberg referenced an exchange representative stating that “periodic onsite inspections are a standard part of the supervision of regulated entities.”
The ACPR inspections aim to ensure that crypto firms comply with regulatory standards, with a particular focus on AML and Counter-Terrorist Financing (CFT) requirements. Firms are typically given several months to address any deficiencies, often by hiring additional compliance or IT personnel to bolster risk management and cybersecurity systems.
France Flexes Its Regulatory Muscle in the EU Crypto Space
France’s renewed scrutiny of cryptocurrency firms reflects a tougher stance on the industry and a push for a larger role in European regulation. In mid-September, French authorities warned they might block crypto companies operating locally under licenses from other EU countries.
The Autorité des Marchés Financiers (AMF) expressed concerns that inconsistent standards across the EU could create enforcement gaps, undermining the regulatory passporting system established under the Markets in Crypto-Assets Regulation (MiCA). AMF chair Marie-Anne Barbat-Layani acknowledged that such a move would constitute a serious breach of trust in European markets but noted that it remains a possibility “held in reserve.”
France is also advocating for greater EU-level control over the crypto sector. Earlier this month, the Bank of France called for the Paris-based European Securities and Markets Authority (ESMA) to assume oversight of the cryptocurrency industry. Central bank governor François Villeroy de Galhau warned that relying solely on national regulators could lead to fragmented and uneven enforcement at a time when the crypto market is rapidly expanding across Europe.
