France has ramped up its efforts to regulate the cryptocurrency sector, recently launching anti-money laundering (AML) inspections at various crypto exchanges, including major players like Binance and Coinhouse. This initiative comes as part of a broader regulatory effort to ensure compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation, which aims to streamline the operation of registered entities across member states. The French prudential supervision authority, known as ACPR, has been conducting these examinations since late 2024.
During these inspections, regulators assess the companies’ adherence to AML and counter-terrorist financing controls, with particular scrutiny on digital asset service provider (PSAN) registration requirements. Binance, in response to the inspections, has stated that periodic onsite evaluations are a standard practice for regulated entities. However, the results of these inspections could have serious implications; failure to address any findings from the ACPR may result in sanctions or hinder a company’s ability to secure necessary MiCA agreements, which would allow for operation throughout all 27 EU member states. Companies must secure this licensing by June 2026, but so far, only a handful, including Deblock, GOin, Bitstack, and Credit Agricole-owned CACEIS, have received the required approvals.
This increase in regulatory scrutiny aligns with the calls from France, Austria, and Italy urging the EU’s top markets watchdog to take a more direct role in overseeing significant crypto firms. These nations have expressed concerns about the inconsistencies in regulatory implementations across the EU, highlighting the urgent need for uniform enforcement.
The scrutiny of Binance comes amid its recent structural changes as co-founder Changpeng Zhao stepped back under pressure, transitioning the company to new shareholders to comply with French laws that prohibit individuals with criminal records from holding majority shares. This restructuring, part of a “global restructuring project,” is intended to align with regulatory standards under MiCA, which would allow companies to leverage their licensing across EU nations.
On the compliance front, the ACPR typically mandates companies to enhance their compliance infrastructure and bolster IT security systems post-inspection. The agency shares its findings with France’s Financial Markets Authority (AMF), which is responsible for granting MiCA agreements.
Globally, Binance has faced scrutiny in other jurisdictions as well. Earlier in the year, AUSTRAC, Australia’s financial intelligence agency, directed Binance Australia to engage external auditors, citing “serious concerns” regarding its anti-money laundering protocols. Despite the challenges, Binance claims significant investment in compliance, boasting a workforce wherein nearly 22% focus on compliance roles.
In a contrasting development, Coinbase recently settled with New York’s Department of Financial Services for $100 million over historical regulatory compliance issues, including a substantial commitment to its compliance programs in the future.
Meanwhile, as European regulators take a closer look at firms such as OKX for potential punitive actions regarding management of stolen funds, France has moved forward with innovative regulatory frameworks. This includes the recent approval of the Lightning Stock Exchange (Lise) as the country’s first fully tokenized equity exchange, which received a DLT TSS license under the EU’s DLT Pilot Regime. Lise’s operational model integrates the roles of trading facilities and central securities depositories, aiming to enhance accessibility for small and mid-cap enterprises traditionally marginalized in public markets. The acceleration of tokenization in real-world assets underscores France’s ambition to establish itself at the forefront of this evolving financial landscape, with recent figures indicating rapid growth in the sector.
