As regulators decide which of more than 100 registered firms will be granted EU-wide operating permits under the Markets in Crypto-Assets (MiCA) law, France is doing anti-money laundering (AML) checks on dozens of cryptocurrency exchanges, including Binance and Coinhouse, Bloomberg reported.
Since late 2024, the French prudential regulatory body, ACPR, has been carrying out on-site monitoring, according to Bloomberg, and Binance was directed to bolster its risk controls during the review.
“Periodic onsite inspections are a standard part of the supervision of regulated entities,” Binance stated.
Why this move?
The tests, which specifically assess anti-money laundering and counter-terrorist financing procedures, confirm adherence to requirements for PSAN (digital asset service provider) registration.
A company’s ability to acquire MiCA agreements from France, which allows businesses to operate in all 27 EU member states, may be jeopardised if ACPR conclusions are not addressed.
Only CACEIS, owned by Deblock, GOin, Bitstack, and Credit Agricole, has been approved thus far, and companies have until June 2026 to get the license.
Following the discovery of implementation discrepancies around the union, France, Austria, and Italy have called on the EU’s top markets watchdog to strengthen regulations and directly oversee significant cryptocurrency businesses.
Also Read: France’s Societe Generale-Forge Debuts USD-Pegged Stablecoin ‘USDCV’ on Ethereum and Solana
Binance and France
After Changpeng Zhao pled guilty to breaking U.S. financial regulations last year, Binance replaced him with two new owners, Yulong Yan and Lihua He, in May 2024 to keep the company operating in France.
Majority stockholders with criminal histories are prohibited under French legislation. In the past, Zhao owned all of Binance France. Because MiCA allows businesses to “passport” their licenses across EU nations, the restructuring is a component of a “global restructuring project” that aims to harmonise with regulatory requirements.
Despite being the subject of two investigations by French prosecutors for possible money laundering and illegal advertising, France remains Binance’s key European base.
Other developments in France
Recently, EUROD, a euro-backed stablecoin that manages more than €150 billion ($173 billion) in assets, is the first cryptocurrency offering from the 175-year-old French banking giant ODDO BHF.
A few months ago, The National Rally, a far-right party in France, had unveiled a draft bill that would mine Bitcoin using the nation’s excess nuclear energy. The goal of the plan is to use power that would otherwise be wasted during periods of low demand or sold at a loss.
The growing crypto regulations and activities in France portray how important the industry has become in the country. France has a high rate of cryptocurrency and blockchain users, and this is vice strong regulation to protect the investors and traders of the country is necessary.
The anti-money laundering step by France clearly shows that the government is tightening down rules for every crypto business or exchange in the country.
Also Read: France Lawmakers Pitch Bitcoin Mining Trial On Surplus Nuclear Power For $100–$150M Revenue