France increases pressure on Binance and crypto platforms

In Brussels, a quiet struggle for influence is shaping the future of crypto regulation in Europe. France, on the front line, intends to influence the implementation of the MiCA regulation and establish itself as the center of gravity for platform control. As the Union enters a critical phase of harmonization, Paris is toughening its rhetoric, and its actions, towards the giants of the sector. Binance, figurehead of the targeted exchanges, becomes one of the symbols of a strategic standoff.

The ACPR tightens its grip on Binance and crypto platforms

While MiCA's flaws allow malicious actors to thrive, the French banking regulator, the Prudential Control and Resolution Authority (ACPR), is currently carrying out a series of reinforced controls in the fight against money laundering (AML) targeting Binance and dozens of other exchanges active in Europe.

These inspections, launched discreetly last year, aim to verify the platforms' compliance with anti-money laundering and anti-terrorist financing (AML-CFT) requirements.

Binance emphasizes that engagement with ACPR is an integral part of our operations as an AML registered company. In addition, the exchange specifies that these verifications are “a routine component of regulatory control”.

However, the ACPR has reportedly formally asked Binance to strengthen its risk management systems. This type of recommendation usually involves concrete corrective actions, which may include:

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

This hardening of tone comes against a backdrop of increased vigilance by the French authorities in the face of the rapid growth of the crypto market. It also reflects Paris's desire to set an example in the rigorous application of regulatory obligations, at a time when the implementation of the MiCA regulation begins at European Union level.

Paris attacks European crypto regulation

Beyond technical controls, France is now distinguished by a stated political ambition to reshape crypto regulatory governance on a European scale. In mid-September, the Financial Markets Authority (AMF) warned against the use of the European passport mechanism provided by MiCA, estimating that certain service providers registered in more flexible jurisdictions could operate in France without sufficient supervision.

The president of the AMF, Marie-Anne Barbat-Layani, did not rule out a radical measure: “It’s a possibility that we are keeping in reserve,” she said. declaredwhile recognizing that such a blockage would constitute “a serious attack on trust between European regulators”.

This position is part of a global strategy carried by the Banque de France, which now calls for transferring supervision of cryptos at the European level to ESMA (European Securities and Markets Authority), an agency based in Paris.

The governor of the Banque de 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 said, pleading for centralized oversight of the industry.

This position opens up perspectives for the entire ecosystem. If Paris manages to impose its vision, the architecture of the MiCA could be reinterpreted for the benefit of a centralization of regulatory powers in Paris, thus upsetting the current balance based on the mutual recognition of national registrations. It could also create diplomatic friction with member states more favorable to a decentralized approach. Finally, for exchanges registered in countries perceived as more permissive, access to the French market, one of the most dynamic in Europe, could become much more complex.