The French financial regulator is carrying out stricter controls at Binance and dozens of other crypto exchanges. France wants to check whether these companies comply with European rules against money laundering and terrorist financing. At the same time, Paris is trying to gain more influence within European supervision of the crypto market.
France is investigating compliance with anti-money laundering rules
According to a report from Bloomberg, the French Prudential Supervision and Resolution Authority (ACPR) has been investigating how well large crypto companies comply with anti-money laundering legislation since last year. The controls mainly focus on the internal procedures to prevent criminal money from being laundered via crypto or used for illegal activities.
Binance, one of the largest crypto exchanges in the world, has reportedly been instructed by the regulator to improve its risk management. A Binance spokesperson stated that regular engagement with the ACPR is a standard part of the supervision of registered companies, and that other crypto platforms also undergo similar reviews.
Companies are given time to resolve shortcomings
If shortcomings are found, companies are usually given several months to make improvements. That could mean hiring additional staff for compliance, IT and risk management, or strengthening their security systems. France’s stricter stance emphasizes that the country wants to protect its financial sector against abuse via crypto.
France wants a central role within European crypto rules
France is increasingly taking the lead in the European debate on crypto regulation. In September, the French Financial Supervisory Authority (AMF) warned that crypto companies operating in France with licenses from other EU countries may be restricted. The AMF fears that differences in enforcement between countries could lead to unfair competition and risks for consumers.
AMF president Marie-Anne Barbat-Layani called blocking foreign permits “a serious step,” but emphasized that France is keeping that option open.
Call for European supervision from Paris
Bank of France Governor François Villeroy de Galhau recently called on the European Union to centralize supervision of the crypto market at the European Securities and Markets Authority (ESMA), which is based in Paris. According to him, supervision by national authorities causes uneven enforcement within the EU and affects confidence in the market.
France wants to show leadership in the growing crypto market
The European crypto market is growing rapidly, and with it the pressure to apply stricter and clear rules. France is trying to position itself as a country that not only takes the risks of crypto seriously, but also as a reliable partner within the European Union.
With the tightened anti-money laundering controls at Binance and other crypto exchanges, France is making clear its determination to fight financial crime and play a leading role in the future of the European crypto market.
Source: https://newsbit.nl/frankrijk-verscherpt-toezicht-op-binance-en-andere-cryptobeurzen/
