Regulator ACPR is conducting additional AML checks on Binance and dozens of exchanges as France seeks to tighten control over the MiCA market.
France steps up AML checks on Binance, pushes for EU regulation
The French banking regulator is conducting a new wave of checks on Binance and dozens of crypto exchanges as part of its enhanced anti-money laundering (AML) oversight, according to Bloomberg, citing sources close to the French Prudential Supervision and Resolution Authority (ACPR).
Focus on AML and cyber risks
According to the sources, the ACPR is checking compliance with AML and counter-terrorism financing (CFT) rules.
The checks began last year and are confidential. Particular attention is being paid to strengthening Binance’s risk control systems, which the regulator required to be updated by 2024.
“Such inspections are standard practice for registered companies. We regularly cooperate with the ACPR,” a Binance spokesperson said.
Companies are usually given several months to address deficiencies — including strengthening their compliance and cybersecurity teams.
France seeks to become the EU’s lead regulator
The increased oversight coincides with Paris’s ambitions to take a central role in overseeing Europe’s crypto industry.
France has called on the EU to hand over regulation of the market to the Paris-based ESMA.
Banque de France Governor François Villeroy de Gallo has warned that fragmenting oversight between national regulators could create “uneven enforcement” and weaken the regulatory integrity of MiCA.
MiCA conflict
In September, the AMF, France’s securities regulator, threatened to block crypto companies operating under licenses obtained in other EU countries.
The reason is the risks of “regulatory tourism,” where companies choose countries with more lenient standards to enter the market.
AMF President Marie-Anne Barba-Layani called this strategy a “back-up option,” acknowledging that it could undermine trust in the EU’s single market.
France wants to dictate the rules of the game
The ACPR pressure and the Bank of France’s statements indicate Paris’ desire to become the center of European crypto regulation.
Amid the rapid growth of the crypto market in Europe, France sees this as an opportunity to become the main arbiter of MiCA, while simultaneously demonstrating a tough stance on AML.
