Binance received the green light from the French authorities on May 6 to establish a significant presence in one of Europe’s major financial centers. However, the country’s market regulator, the Autorité des marchés financiers (AMF), has been criticized for its recognition of the crypto exchange.
Recession of European lawmakers
A step Report From the Financial Times, EU lawmaker Arrow Lalouk called on the AMF to reconsider its decision, saying it “guarantees respect” for Binance.
According to the Financial Times, in a letter to the AMF in early June, French regulator MEP concluded:
“Even with surprise and concern…, especially many other supervisors, and no less important ones, have already refused to give any registration or approval to Binance. »
Also, the legislator said:
“Our job as members of European and national legislatures is to act as quickly as possible to clarify the situation so that companies can fulfill their responsibilities more effectively. »
However, the crypto exchange said the French approval was an important development in the company’s plan to operate as a regular business with an official headquarters. Changpeng Zhao, CEO of Binance, said that France will serve as the regional headquarters for the “minus” exchange.
Cold reception in Europe
AML/CFT concerns have triggered restrictions on the operations of cryptocurrency companies in Europe, which is not without reason. Additionally, the company has come under fire for its policies and practices aimed at protecting customers.
Earlier in June, a Reuters Report Binance has been accused of facilitating more than $2.35 billion in illegal activity between 2017 and 2021. The report added that the crypto exchange was a convenient way for illegal actors to wash their funds.
As expected, the French authorities gave the green light to the crypto exchange, drawing criticism.
Spanish MEP Ernest Ertasun, a member of the European Parliament’s Economic and Monetary Affairs Committee, called the decision “unexpected”. He said: “I didn’t expect this to happen in France. As a jurisdiction, France would likely take a harder line in regulating crypto,” the Financial Times reported.
Separately, the UK’s Financial Conduct Commission suspended the operation of the transaction in June 2021. It noted that the cryptocurrency “lacks the ability to monitor effectively” and warned that its “financial products complex and high-risk” products pose a significant risk to consumers. ”.
Similarly, regulators in Singapore, Japan, Italy and the Netherlands have suspended the operations of cryptocurrency giants in their jurisdiction.
Moderate success in other jurisdictions
Binance has seen success in some jurisdictions, despite increasing regulation in Europe and Asia.
In May 2022, the exchange was approved to operate as a cryptocurrency service provider in Italy. A year ago, the country’s market regulator warned that the exchange was not a licensed investment services provider.
In addition, authorities in Dubai had earlier in March authorized Binance to operate a cryptocurrency license in its jurisdiction. The crypto exchange hit a similar high in Bahrain.
However, the shift of EU markets to the Crypto Assets Regulation (MICA) will determine the future of accounting in Europe.
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France is facing a backlash over Binance’s regulatory approval, with the French MEP calling the move “surprising and worrying”.
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