France’s Increasing Scrutiny of Cryptocurrency Exchanges
Update on AML Checks
As of October 17, 2025, it has been reported that France’s banking regulator, the French Prudential Supervision and Resolution Authority (ACPR), is conducting extensive anti-money laundering (AML) evaluations on Binance and numerous other cryptocurrency exchanges. This development aligns with Paris’s ambitious agenda to enhance its oversight of the European crypto industry under the Markets in Crypto-Assets Regulation (MiCA).
Ongoing Compliance Checks
According to a Bloomberg report, these investigations are part of a broader initiative that began last year, with a focus on verifying compliance with AML regulations. This is particularly crucial in an industry often labeled as lacking sufficient oversight and regulatory frameworks. Sources familiar with the matter have indicated that these checks are confidential; however, they emphasize the significance of ensuring that crypto firms like Binance adhere to stipulated regulations aimed at combatting money laundering and financing terrorism.
A spokesperson from Binance confirmed that engagement with the ACPR is a vital component of their operations as an AML-registered entity. The spokesperson also pointed out that these reviews are routine under the ACPR’s regulatory oversight.
Strengthening Risk Controls
Following the initial evaluation, Binance was reportedly directed to fortify its risk management strategies. Often, companies facing such scrutiny must enhance their compliance frameworks and bolster their cybersecurity systems, typically over a period of several months. This might involve hiring specialized personnel to address identified deficiencies within their operations.
France’s Toughening Stance on Crypto
The increased scrutiny from French regulators coincides with a growing desire to assert France’s authority over the crypto landscape in Europe. Just last month, France hinted at potentially blocking cryptocurrency companies operating with licenses granted by other EU nations.
The Autorité des Marchés Financiers (AMF), France’s securities regulator, voiced concerns about regulatory gaps that could arise from inconsistent enforcement across the EU. Such disparities undermine the foundational principles established by MiCA, which was designed to provide a unified framework for cryptocurrency operations across member states.
Potential Regulatory Conflicts
The chair of the AMF, Marie-Anne Barbat-Layani, acknowledged that attempting to impede cross-border operations would signify a critical breach of trust within European markets. Despite this, she has not ruled out such measures, stating it remains a "possibility we hold in reserve."
This situation illustrates the tension between different regulatory approaches within the EU, as countries navigate their priorities in relation to the dynamic nature of the cryptocurrency sector.
Calls for Centralized Oversight
On a related note, earlier this month, the Bank of France urged the European Union to consolidate crypto oversight under the European Securities and Markets Authority (ESMA). Governor François Villeroy de Galhau emphasized that fragmented regulatory frameworks could lead to inconsistent enforcement, undermining the stability of the growing industry.
As the cryptocurrency market continues to expand rapidly within the EU, the call for a more unified regulatory approach becomes increasingly urgent. The complexity of the crypto ecosystem, combined with the potential for misuse, poses significant challenges that necessitate a comprehensive strategy to safeguard markets and investors alike.
Conclusion
In light of these developments, it is evident that France is positioned to take a more significant role in shaping the regulatory landscape for cryptocurrencies in Europe. As compliance checks intensify and the AMF and ACPR tighten their grip on the industry, the actions taken by French regulators could set precedents influencing broader European regulatory practices—highlighting the ever-evolving relationship between cryptocurrency and governance in the continent.