binance Faces Compliance Scrutiny in France
French authorities are closely examining Binance’s compliance practices.The Autorité de Contrôle Prudentiel et de Résolution (ACPR) has been conducting on-site inspections. These checks aim to ensure Binance meets anti-money laundering (AML) and counter-terrorism financing standards.
This scrutiny is part of a broader effort to regulate crypto platforms. the ACPR is reviewing dozens of exchanges, including Binance and Coinhouse. The goal is to grant EU-wide permits to compliant platforms.Binance,the world’s largest crypto exchange,has been told to strengthen its risk controls.
Binance views these inspections as routine for regulated entities. However, the exchange has a history of compliance issues. In the U.S.and Australia, Binance faced AML violations. In 2023,it settled a $4.3 billion lawsuit over AML laws.
Europe is moving towards centralized oversight of the crypto market. France, Austria, and Italy want the European Securities and Markets Authority (ESMA) to supervise major crypto firms. This push for uniform regulations aims to enhance market integrity.
Binance’s compliance challenges include inadequate identity checks, which can enable illegal activities. The firm must implement stronger controls, such as robust customer identification and effective transaction monitoring.
Despite these hurdles, Binance continues to navigate the regulatory landscape. It has re-entered Asian markets by acquiring South korea’s Gopax exchange. The exchange’s adaptability shows its commitment to staying operational while addressing compliance concerns.
