Binance Under Pressure From French Authorities

In Brussels, a subtle power struggle is shaping the future of crypto regulation in Europe. France, at the forefront, intends to influence the implementation of the MiCA regulation and establish itself as the center of gravity for platform oversight. While the Union enters a critical phase of harmonization, Paris toughens its rhetoric and actions towards industry giants. Binance, a flagship among targeted exchanges, becomes a symbol of a strategic showdown.

The ACPR tightens the grip on Binance and crypto platforms

While MiCA’s flaws allow malicious actors to thrive, the French banking regulator, the Prudential Supervision and Resolution Authority (ACPR), is currently conducting a series of enhanced checks regarding anti-money laundering (AML) targeting Binance and dozens of other exchanges active in Europe.

These inspections, discreetly launched since last year, aim to verify platform compliance with anti-money laundering and counter-terrorism financing (AML-CFT) requirements.

Binance emphasizes that engagement with the ACPR is an integral part of our operations as an AML-registered company. Furthermore, the exchange states that these checks are “a routine component of regulatory oversight”.

However, the ACPR reportedly formally requested Binance to strengthen its risk management systems. Such recommendations generally involve concrete corrective actions, which may include :

• Strengthening compliance teams, including specialized recruitment ;
• Improving IT systems to better detect suspicious transactions ;
• Optimizing cybersecurity protocols to ensure real-time monitoring ;
• Updating internal AML/CFT policies in accordance with European standards.

This toughening of tone occurs amid increased vigilance by French authorities in response to the rapid growth of the crypto market. It also reflects Paris’s desire to set an example in rigorously enforcing regulatory obligations at a time when the MiCA regulation is being implemented across the European Union.

Paris attacks European crypto regulation

Beyond technical controls, France now stands out with a clear political ambition to reshape crypto regulatory governance at the European level. In mid-September, the Financial Markets Authority (AMF) issued a warning against the use of the European passport mechanism provided by MiCA, arguing that some providers registered in more lenient jurisdictions could operate in France without sufficient supervision.

The AMF’s chairwoman, Marie-Anne Barbat-Layani, did not rule out a radical measure: “it’s a possibility we keep in reserve,” she stated, while acknowledging that such a blockage would be “a serious breach of trust among European regulators.”

This position fits into a broader strategy led by the Bank of France, which now calls for transferring crypto supervision to the European level through ESMA (European Securities and Markets Authority), an agency based precisely in Paris.

The Governor of the Bank of France, François Villeroy de Galhau, warned against fragmented regulation: “relying solely on national regulators could lead to uneven application of rules within the EU,” he indicated, advocating for centralized industry oversight.

This stance opens up prospects for the entire ecosystem. If Paris manages to impose its vision, the MiCA framework could be reinterpreted in favor of centralizing regulatory powers in Paris, thus disrupting the current balance based on mutual recognition of national registrations. It might also create diplomatic frictions with member states favoring a decentralized approach. Finally, for exchanges registered in countries perceived as more permissive, access to the French market, one of Europe’s most dynamic, could become much more complex.