Binance Becomes the First Authorized Crypto Exchange in France
Binance is now officially the first major crypto exchange to be registered in France and aims to expand cryptocurrency services and education across Europe. The company has highlighted that greater crypto adoption in Europe will enhance liquidity in the market, which is expected to be welcomed by the community.
Originally based in China, Binance moved its operations to Singapore after China imposed a nationwide crypto ban. However, the exchange later withdrew its license application in Singapore. Currently, Binance’s main offices are located in the Cayman Islands.
Pravni izazovi Binancea
Binance has faced significant challenges in operating globally due to various legal issues.
In 2019, it was banned from operating in the United States for regulatory reasons, leading to the creation of Binance.US, a separate exchange registered with the U.S. Financial Crimes Enforcement Network (FinCEN). Despite its efforts to comply with U.S. laws, Binance.US remains banned in seven states. In 2021, the exchange was reportedly under investigation by the U.S. Department of Justice and the Internal Revenue Service (IRS) for tax evasion and money laundering.
In early 2021, the UK’s Financial Conduct Authority (FCA) mandated that all crypto firms must register to comply with anti-money laundering regulations. Binance failed to meet these requirements and was ordered to cease all operations in the UK by mid-2021.
The Japanese and Thai governments also issued warnings against Binance. The company had initially planned to establish its offices in Malta after the crypto ban in China but abandoned the idea after encountering the country’s strict anti-money laundering regulations.
For years, Binance operated without a formal headquarters, which it even proudly embraced. However, with growing legal challenges, the company has been motivated to work more closely with regulators. Savjet: Are you familiar with Binance’s major cryptocurrency, Binance Coin (BNB)?
Binance’s Efforts on Anti-Money Laundering Compliance
Binance has made efforts to improve its anti-money laundering (AML) practices, including implementing more robust customer verification procedures. The exchange has also welcomed greater government oversight. With the French authorities now overseeing its operations, it is likely that Binance will adhere to stricter AML regulations. The company has been registered by the Autorité des Marchés Financiers (AMF), which regulates financial markets in France, ensuring investor protection and education. Additionally, Binance has received approval from the Autorité de Contrôle Prudentiel et de Résolution (ACPR), an independent body that supervises banks and insurance companies in France.
To support the development of the European blockchain and cryptocurrency ecosystem, Binance has invested €100 million in France.
O Binanceu
Founded in 2017 by Changpeng Zhao, Binance quickly became the largest crypto exchange in the world. It handles over $14 billion in spot trading volume daily and manages nearly $50 billion in derivatives volume each day. CryptoChipy will continue to provide updates on this major exchange. Not a Binance user yet? Try it here!
Regulatory Risk Considerations
When Markus attempted to verify Binance’s registration in France, he could not find it listed on the official AMF France website, whether under the “crypto” category, the “whitelist,” or any company name related to Binance. The latest updated list was from January 2022. Therefore, readers should take this information with caution and always verify news or claims before accepting them. It’s also worth noting that both the UK’s FCA and the German regulator BaFin have taken actions against Binance, with the former cracking down on Binance Markets Limited and the latter on stock tokens offered by Binance Deutschland GmbH & Co.
