France is ramping up regulatory pressure on Binance and other cryptocurrency exchanges, signalling a push for greater influence over how Europe enforces the forthcoming Markets in Crypto-Assets Regulation (MiCA). The move reflects growing tensions within the European Union over who should lead oversight of the rapidly expanding crypto sector.
French Regulator Conducts AML Checks
The French Prudential Supervision and Resolution Authority (ACPR) has launched expanded Anti-Money Laundering (AML) inspections on Binance and dozens of other digital asset platforms, according to a Bloomberg report citing anonymous sources. These confidential checks reportedly began last year.
Binance was specifically instructed to enhance its risk controls during earlier reviews. A spokesperson for the exchange confirmed ongoing engagement with the ACPR, describing the inspections as a routine element of operating as an AML-registered entity. The representative also stressed that multiple exchanges are undergoing similar scrutiny.
These evaluations focus on AML and Counter-Terrorist Financing (CFT) standards. Firms found with compliance gaps are typically given several months to remedy deficiencies, often by hiring more compliance or IT specialists to bolster governance and cybersecurity frameworks.
Paris Takes Tougher Stance on Crypto
The renewed regulatory pressure comes amid signs that France is adopting a more hardline approach to the crypto industry. In mid-September, authorities warned they may attempt to block companies operating in France under licences obtained in other EU states.
The Autorité des Marchés Financiers (AMF), France’s securities watchdog, expressed concern about uneven supervisory standards across the bloc. It warned that such disparities could undermine MiCA’s passporting system, which is intended to allow firms to operate across the EU once authorised in one member state. AMF chair Marie-Anne Barbat-Layani acknowledged that such a step would represent a deep breach of trust within the single market, yet insisted it remains an option.
Call for Centralised EU Oversight
France’s ambitions extend beyond national borders. Earlier this month, the Bank of France urged the EU to grant the Paris-based European Securities and Markets Authority (ESMA) greater control over crypto supervision.
François Villeroy de Galhau, governor of the central bank, argued that relying solely on national regulators risks fragmented enforcement. He warned that inconsistent supervision could weaken investor protection and regulatory credibility as digital assets gain traction across Europe.
MiCA Sparks Institutional Competition
MiCA, the EU’s landmark crypto framework, is set to harmonise rules for digital assets, trading platforms and stablecoin issuers. However, its rollout has exposed institutional disputes over jurisdiction. France’s push to elevate ESMA reflects a broader effort to centralise authority and ensure uniform enforcement.
Critics argue that allowing individual states to interpret and enforce MiCA could lead to regulatory arbitrage, with companies gravitating towards jurisdictions perceived as more lenient. Supporters of Paris’s position contend that only a single EU authority can ensure consistent standards.
Industry Faces Rising Compliance Demands
For crypto exchanges such as Binance, the heightened scrutiny in France signals a new regulatory phase marked by stricter oversight and greater accountability. MiCA introduces comprehensive rules on governance, transparency and consumer protection, and companies will be expected to meet higher compliance benchmarks.
As European regulators compete for influence, the crypto sector faces growing pressure to adapt. France’s assertive stance suggests that national authorities will not hesitate to challenge firms or fellow regulators to secure a stronger role in shaping Europe’s digital asset future.
