France is intensifying its scrutiny of Binance and other cryptocurrency exchanges, signaling a tougher stance on the crypto industry amid an ongoing power dynamic within the European Union. The French Prudential Supervision and Resolution Authority (ACPR), the country's banking regulator, is currently conducting additional Anti-Money Laundering (AML) checks on Binance and "dozens of exchanges".
These intensified checks, which reportedly began last year, are focused on ensuring compliance with AML and Counter-Terrorist Financing (CFT) regulations. According to sources, the ACPR specifically instructed Binance to bolster its risk controls following initial inspections. Companies are typically given several months to rectify any deficiencies, often requiring them to hire additional compliance or information technology personnel to strengthen their risk and cybersecurity systems. Binance has acknowledged that "periodic onsite inspections are a standard part of the supervision of regulated entities".
This regulatory pressure arrives as France seeks to assert greater authority over the European crypto landscape, particularly concerning the implementation of the Markets in Crypto-Assets (MiCA) regulation. MiCA is a comprehensive framework designed to regulate crypto-assets across the EU. It allows licensed crypto firms to operate across the EU. In France, companies have until the end of June 2026 to get approval.
France has voiced concerns regarding potential regulatory gaps arising from differing standards across EU member states, which could undermine the "regulatory passporting" intended by MiCA. In mid-September, the French securities regulator, the Autorité des Marchés Financiers (AMF), warned that it might attempt to block cryptocurrency companies operating locally under licenses obtained in other European countries.
Under the PACTE Act, a DASP (digital asset service provider) is required to register with the Financial Markets Authority (Autorité des Marchés Financiers, or “AMF”) when it provides at least one of the following four services: (1) custody of digital assets on behalf of third parties; (2) buying or selling digital assets in legal currency; (3) exchanging of digital assets for other digital assets; and (4) operation of a digital asset trading platform.
The scrutiny extends beyond Binance, with the ACPR examining numerous crypto service providers operating in France. The increased AML checks aim to determine which of these firms will be eligible for the MiCA license, a crucial requirement for operating throughout the EU. To date, only a handful of companies, including Deblock, GOin, Bitstack, and CACEIS, have secured this approval. The ACPR shares inspection findings with the AMF, making MiCA compliance essential for EU-wide operations.
France is also actively combating unauthorized crypto operators, with the AMF recently adding three websites offering illegal crypto services to its blacklist, bringing the total blocked in 2025 to 22. This proactive approach underscores France's commitment to investor protection and market integrity.
In addition to the AML checks and MiCA preparations, Binance is also facing a new probe by French authorities into allegations of breaking EU laws between 2019 and 2024. Furthermore, the fact that Binance France's sole shareholder is Changpeng Zhao, who has a conviction, may cause regulators to reconsider the MiCA license. These regulatory challenges in France could potentially impact Binance's broader access to the European market.
