France Steps Up AML Checks on Binance, Other Crypto Exchanges
ACPR Conducts Fresh Compliance Checks
According to a Bloomberg report on Friday, the Prudential Supervision and Reanswer Authority (ACPR) has been examining AML compliance across “dozens of platforms” since last year. The inspections are confidential and aim to verify adherence to AML and Counter-Terrorist Financing (CFT) rules, the report said.
People familiar with the matter told Bloomberg that the ACPR instructed Binance in 2023 to tighten its internal risk controls. The platform said its dialogue with the regulator remains “an ongoing component of operating as an AML-registered company.”
“Reviews are a routine part of the ACPR’s oversight,” a Binance spokesperson said, adding that the regulator “is conducting these checks across dozens of platforms.”
Investor Takeaway
France Signals Harder Line on Crypto Firms
The renewed oversight follows months of tension between Paris and other EU capitals over how MiCA will be enforced. In mid-September, the Autorité des Marchés Financiers (AMF) warned that France may move to block crypto firms operating locally under licenses obtained elsewhere in the bloc.
AMF chair Marie-Anne Barbat-Layani said unequal supervision across Europe risked creating enforcement gaps. She acknowledged the possibility of barring firms passported under lighter regimes, calling it “a possibility we hold in reserve.”
The tougher tone comes as French officials argue that allowing less rigorous regimes in smaller EU states to passport licenses could undermine investor protection. The AMF has pushed for uniform enforcement and closer alignment between national watchdogs and Brussels.
Paris Pushes for Centralized EU Oversight
The Bank of France has joined calls for more centralized control. Earlier this month, Governor François Villeroy de Galhau urged the European Union to hand direct crypto oversight to the European Securities and Markets Authority (ESMA), based in Paris. He warned that relying on national regulators could lead to fragmented enforcement under MiCA.
“Consistency across the EU is critical as the sector grows,” Villeroy said, arguing that ESMA should act as the single authority for supervision and registration. The proposal would effectively grant Paris greater influence over EU crypto policy, given ESMA’s location in the French capital.
The Bank of France’s lobbying reflects growing competition among European capitals to shape how MiCA is implemented. While MiCA promises uniform licensing across the bloc, national regulators are still responsible for enforcing AML and conduct rules—leaving room for political friction.
Investor Takeaway
Implications for Binance and the Market
Binance’s AML reviews add to its mounting regulatory challenges in Europe. The platform has already faced restrictions in Belgium, the Netherlands, and Germany over compliance deficiencies. France had been considered one of its more stable bases later than Binance secured registration as a Digital Asset Service Provider (DASP) in 2022.
The renewed checks from the ACPR could complicate that footing. Firms flagged during inspections are typically given several months to address shortcomings, often by hiring additional compliance and IT staff. Binance was reportedly told to bolster both its risk management and cybersecurity systems last year.
For Paris, the crackdown fits a broader political goal: cementing France’s status as Europe’s financial center for digital assets while tightening standards to avoid future scandals. The balance between control and competitiveness will define how MiCA functions in practice once fully implemented in 2026.
Whether France’s approach strengthens market integrity or deters investment will depend on how aggressively it wields its new powers — and whether other EU states accept its leadership in defining the next phase of European crypto regulation.
