France Cracks Down on Crypto: Binance and Exchanges Face Stricter AML Rules

 

France Tightens Anti-Money Laundering Oversight on Crypto Firms Ahead of MiCA Deadline

France is taking bold steps to enforce stricter anti-money laundering (AML) oversight on cryptocurrency exchanges, placing firms like Binance under heightened scrutiny. With the Markets in Crypto-Assets (MiCA) regulation deadline approaching in mid-2026, French authorities are signaling that compliance gaps will not be tolerated, a move that could reshape the operations of crypto businesses across the European Union.

Heightened Oversight: ACPR Expands Reviews

The French prudential regulator, ACPR (Autorité de Contrôle Prudentiel et de Résolution), has intensified inspections of crypto firms registered as PSANs (providers of digital-asset services). These expanded reviews, which began in late 2024, now cover over a hundred entities operating in France, including major exchanges such as Binance.

Source: X

During the initial on-site inspections, ACPR reportedly highlighted deficiencies in Binance’s risk and compliance frameworks. The company was instructed to strengthen its internal controls by:

• Hiring additional compliance personnel

• Enhancing IT and cybersecurity protocols

• Tightening risk management and oversight systems

Firms were given several months to implement these improvements, with results closely monitored by the Autorité des Marchés Financiers (AMF), France’s financial markets authority. Failure to address the identified weaknesses could block a firm from obtaining the MiCA cross-EU license, effectively restricting its ability to operate across the European Union.

The MiCA Regulation and Its High Stakes

The MiCA framework, which sets uniform regulatory standards for crypto-assets in the EU, requires that all French crypto firms secure EU-wide approval by June 2026. To date, only a select few—such as Deblock, GOin, Bitstack, and CACEIS (a Crédit Agricole entity)—have successfully navigated the licensing process.

For firms that do not comply, consequences extend beyond France. Since MiCA enables an EU-wide operational license, failure in France could prevent a firm from accessing all other member states. The French government’s push to lead in crypto regulation underscores the high stakes, as the ACPR’s enforcement actions may influence broader EU policies and industry standards.

Focus Areas of AML Oversight

The ACPR inspections emphasize compliance with PSAN registration requirements, evaluating firms on multiple fronts:

• AML/CFT Measures: Are firms adhering to anti-money laundering and counter-terrorist financing protocols?

• Know Your Customer (KYC): Are client onboarding and verification procedures robust?

• Internal Risk Management: Do risk assessment frameworks, staffing, and reporting structures meet regulatory standards?

• IT Security and Audit Trails: Are systems secure, and can all transactions be traced effectively?

Binance has responded by stating it is “cooperating fully” and remains committed to aligning with both French and EU regulations. The company described the inspections as standard supervisory measures, emphasizing that updates to compliance and technology frameworks are ongoing.

Cross-Border Cooperation and AMLA

France’s intensified AML approach aligns with broader EU efforts to harmonize crypto regulations. In 2024, the European Parliament approved Regulation 2024/1620, establishing the European Anti-Money Laundering Authority (AMLA). AMLA’s mandate is to facilitate collaboration between national regulators, enabling them to pool resources, share intelligence, and coordinate enforcement across borders.

France’s national financial intelligence unit, Tracfin, has a history of cross-border cooperation. In 2023, Tracfin worked alongside Luxembourg’s financial intelligence unit to tackle VAT refund fraud. Utilizing secure networks like FIU.net and the Egmont Secure Web, the agencies shared data and eventually referred the case to the European Public Prosecutor’s Office.

However, standardizing processes across jurisdictions remains challenging. Differences in agency mandates, access to financial data, and technological capabilities can complicate collaborative efforts. Regulatory analysts emphasize the importance of standardized reporting formats, secure data sharing, and integrated tools to ensure EU-wide enforcement is effective.

Implications for Crypto Firms

For exchanges like Binance and other PSAN-registered firms, the ACPR inspections signal that robust compliance is no longer optional. Firms must:

• Upgrade internal compliance and monitoring frameworks

• Invest in cybersecurity and IT infrastructure

• Maintain transparent KYC processes

• Align operations with both national and EU-level regulatory expectations

Those that fail to meet these requirements may face restrictions that go beyond France, effectively barring them from EU markets and limiting their growth prospects. Conversely, firms that successfully navigate the ACPR inspections could emerge with stronger reputations and greater trust from both regulators and investors.

Industry Perspective

Market observers note that France’s proactive AML enforcement could set a precedent for the rest of Europe. By raising compliance standards and ensuring PSAN firms adhere to strict protocols, the French authorities may create a regulatory benchmark that encourages other EU states to tighten oversight.

“France is sending a clear signal: the era of minimal oversight for crypto exchanges is over,” said Julian Weber, a blockchain regulatory analyst. “Exchanges must invest in compliance or risk losing access to the European market entirely. Those that adapt will benefit from a competitive edge and greater investor confidence.”

This heightened regulatory environment may also encourage institutional adoption. Firms that demonstrate compliance readiness and strong internal controls are more likely to attract partnerships with banks, asset managers, and financial institutions seeking regulated crypto exposure.

What to Watch in the Coming Months

As the MiCA licensing deadline approaches, key developments to monitor include:

• Whether Binance and other PSAN firms can successfully address compliance gaps

• The pace at which AMLA begins cross-border analyses or enforcement actions

• France’s influence on EU-wide crypto oversight and potential adoption of similar inspection frameworks by other member states

The next year will be critical for the European crypto industry. Firms that fail to meet evolving standards may be forced to exit, while those that adapt could benefit from early-mover advantages in a more regulated, transparent market.

Conclusion

France’s intensified anti-money laundering inspections mark a pivotal moment for cryptocurrency exchanges in Europe. By holding firms accountable to strict PSAN requirements and coordinating closely with EU authorities, the ACPR is establishing a new benchmark for regulatory compliance.

With the MiCA regulation deadline looming in June 2026, exchanges face high stakes: adapt or risk losing access to the European market. This regulatory push may ultimately reshape the crypto landscape, fostering greater transparency, investor confidence, and operational stability across the EU.

France’s proactive approach highlights a broader trend: as digital assets mature, regulatory oversight is becoming as critical to market success as technology and liquidity. The coming months will reveal which firms can rise to the challenge and which may be left behind.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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