**French Regulators Demand Binance Strengthen Compliance Amid Expanded AML Checks**
French authorities have intensified their efforts to ensure that cryptocurrency exchanges comply with stringent anti-money laundering (AML) regulations. Binance, one of the world’s largest crypto exchanges, along with several other firms operating in France, is currently under heightened scrutiny as part of an expanded inspection process.
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### Expanded AML Inspections Target Crypto Exchanges
The ACPR (Prudential Supervision and Resolution Authority) and the AMF (Financial Markets Authority) have ramped up comprehensive AML inspections targeting crypto exchanges within France. This initiative forms part of a wider review of digital-asset service providers registered in the country.
French regulators are focused on verifying that crypto firms have robust mechanisms in place to prevent money laundering and counter-terrorist financing. The inspections emphasize adherence to strict European Union AML standards, ensuring that exchanges meet the evolving regulatory expectations.
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### Regulatory Demands on Binance
Binance has been specifically instructed to enhance its risk management and compliance frameworks. The ACPR has called on Binance to improve its internal controls and expand its risk management teams to better handle compliance challenges.
These measures are crucial as French authorities prepare crypto exchanges for authorization under the EU’s Markets in Crypto-Assets (MiCA) regulation. MiCA aims to establish a comprehensive regulatory framework across the European Union, requiring digital-asset providers to implement rigorous AML and counter-terrorist financing safeguards.
To operate lawfully within the EU, Binance and other exchanges must meet these high standards. Failure to do so could lead to regulatory penalties or even exclusion from the MiCA licensing process.
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### Consequences of Non-Compliance
Crypto firms that do not comply with AML obligations face severe repercussions. Non-compliant exchanges may be subject to financial fines and operational restrictions imposed by French regulators.
More importantly, these firms risk disqualification from the MiCA licensing system—a critical authorization needed to operate legally within the EU market. Notably, only a select few companies, such as Deblock, GOin, Bitstack, and CACEIS, have received MiCA approval to date.
This underscores the importance for all crypto exchanges to meet regulatory standards promptly, or risk exclusion from Europe’s rapidly expanding digital asset sector.
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### Timeline for Compliance Adjustments
When inspections reveal deficiencies, the AMF and other French regulators typically provide crypto firms with a window to address and rectify these issues. However, this grace period can be short, and failure to implement required changes within the stipulated timeline may lead to enforcement actions or the loss of MiCA operating authorization.
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As France aligns its regulatory landscape with EU directives, crypto exchanges such as Binance must elevate their compliance and risk management frameworks to maintain access to one of the world’s most significant digital asset markets. The coming months will be critical for these firms as they navigate increasingly stringent AML requirements and the path toward full regulatory approval under MiCA.
https://coincentral.com/binance-under-scrutiny-in-frances-broader-anti-money-laundering-review/
