France turns up the heat on Binance and rivals amid EU power struggle

France’s banking regulator is conducting additional Anti-Money Laundering (AML) checks on Binance and other cryptocurrency exchanges, as Paris lobbies for more authority over Europe’s crypto industry under the Markets in Crypto-Assets Regulation (MiCA).

According to a Friday Bloomberg report, the French Prudential Supervision and Resolution Authority (ACPR) is checking the Anti-Money Laundering compliance of Binance and “dozens of exchanges.” The report cites anonymous sources who noted that the checks started last year and are confidential.

The ACPR reportedly instructed Binance, in particular, to strengthen its risk controls last year. Binance had not responded to Cointelegraph’s request for comment by publication. Still, Bloomberg cited an exchange representative saying that “periodic onsite inspections are a standard part of the supervision of regulated entities.”

These inspections are reportedly supposed to verify that institutions comply with regulations, with a focus on AML and Counter-Terrorist Financing (CFT) rules. As a result of last year’s checks, Binance was reportedly asked to strengthen its compliance and risk controls.

Companies are typically given several months to address deficiencies, often by hiring additional compliance or information technology staff to strengthen risk and cybersecurity systems.

Related: EU Eyes Central Crypto Oversight as MiCA Faces Tensions

France goes on a power trip

The renewed scrutiny comes as France signals a tougher stance on the crypto industry and a desire to play a larger role in European regulation. In mid-September, France warned it may try to block cryptocurrency companies operating locally under licenses obtained in other European countries.

At the time, the French securities regulator, the Autorité des Marchés Financiers (AMF), stated that it was concerned about potential regulatory enforcement gaps introduced by unequal standards across the European Union. This would undermine the regulatory passporting introduced by Europe’s Markets in Crypto-Assets Regulation, or MiCA.

AMF chair Marie-Anne Barbat-Layani admitted that the move would represent a serious breach of trust in European markets. Still, she said that “it’s still a possibility we hold in reserve.”

Related: Santander, Crédit Agricole asset arm receives French crypto custody license

France wants power over EU crypto

Earlier this month, the Bank of France called on the European Union to grant the Paris-based European Securities and Markets Authority (ESMA) control over the cryptocurrency industry. The central bank’s Governor, François Villeroy de Galhau, warned against fragmented oversight.

Galhau claimed that relying on national regulators may lead to uneven enforcement across the EU. The need to enforce rules consistently is particularly dire as the crypto industry is experiencing rapid growth in the region.

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