France instructs Binance to focus on AML compliance before expanding to country

France instructs Binance to focus on AML compliance before expanding to country
10 months ago
2 mins read

Cryptocurrency exchange Binance’s quest to set up a regional office in Paris, France, nows depends on the platform’s anti-money laundering (AML) compliance. 

French financial regulators have called Binance to concentrate on AML regulation before it receives approval for a regional hub in the country, Reuters reports

According to France central bank Governor Francois Villeroy de Galhau, the Binance choice of France is a good indicator for the country’s financial sector, but the exchange needs to guarantee trust and credibility. 

“It’s a sign of the Paris market’s innovative dynamism, but this obviously depends on trust and credibility being guaranteed…That’s what will guide the ACPR and the AMF (financial markets authority) in their actions, especially on the key issue of anti-money laundering,” said Villeroy.

This comes after Binance CEO Changpeng Zhao revealed that the exchange intends to set up regional hubs globally to get into good books with regulators. This after the exchange came under scrutiny over alleged weak anti-money laundering laws. 

Zhao, therefore, noted that Paris would become a natural choice for a regional office in Europe. 

According to Binance, a decentralized management style has been a key point of contention with regulators, and establishing offices is the first step towards making amends. 

In this line, Zhao revealed that Binance was working towards getting a French license within the next 12 months. 

Binance remains among top exchanges

The scrutiny on Binance has resulted in the crypto exchange being banned in some jurisdictions. Despite the legal woes, the exchange remains a leading player in the space.

Our previous report indicates that the platform recorded the highest web traffic among digital currency exchanges at 171 million in October. 

Overall, Binance acknowledges the regulatory obstacles, with Zhao stating that they aim to be in good books with regulators. Consequently, the exchange has focused on hiring high-profile individuals specializing in compliance. 

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Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.