France is ramping up its anti-money laundering (AML) oversight on cryptocurrency trading platforms as the country prepares for a new phase of European Union-wide licensing. The French Prudential Supervision and Resolution Authority (ACPR) has intensified its investigations into dozens of crypto service providers since late 2024, focusing on tightening their risk controls and compliance frameworks.
Currently, more than 100 crypto institutions are registered to operate in France. However, regulators are now examining which of these entities meet the stricter standards required to qualify for EU passporting rights under the Markets in Crypto-Assets (MiCA) regulation, a framework set to unify cryptocurrency oversight across the European Union in the coming months.
Binance Under Heightened Regulatory Pressure
Among the companies under heightened scrutiny is Binance, the world’s largest cryptocurrency exchange by trading volume. The ACPR specifically requested the exchange to strengthen its AML and compliance procedures, underscoring France’s determination to enforce higher operational standards.
Binance has faced judicial investigations in France over allegations of weak compliance between 2019 and 2024, with authorities suggesting the platform may have facilitated money laundering, tax evasion, and financial crimes. The company has firmly denied these accusations, emphasizing that it has significantly enhanced its know-your-customer (KYC) and AML systems in recent years.
These probes reflect a broader trend among global regulators pushing for accountability from major crypto exchanges, particularly those handling large transaction volumes and cross-border flows.
France Pushes for Stricter MiCA Enforcement
As the MiCA regulation approaches implementation, French regulators are seeking to ensure that only firms meeting stringent local standards can operate within their jurisdiction. The French securities regulator (AMF) and the ACPR have expressed concerns about regulatory arbitrage, where crypto companies may attempt to obtain EU licenses from countries with more lenient oversight.
In response, France is considering blocking firms from using such “passporting” licenses to operate domestically. The AMF has signaled that it may refuse recognition of licenses issued by other EU member states, reinforcing France’s commitment to maintaining rigorous supervision.
This stance positions France as one of the most compliance-driven jurisdictions in Europe. It also demonstrates the country’s ambition to ensure that crypto companies operating within its borders adhere to the same robust standards applied to traditional financial institutions.
France Seeks Greater EU-Level Coordination
Beyond domestic measures, French authorities are advocating for stronger centralized oversight at the European level. The ACPR and AMF have both called for enhanced supervision from agencies such as the European Securities and Markets Authority (ESMA). France argues that consistent enforcement across the EU is necessary to prevent regulatory loopholes and maintain the integrity of the single market.
Conclusion: France Sets the Tone for Europe’s Crypto Future
France’s intensified AML crackdown marks a pivotal moment for the European crypto industry. As regulators sift through over 100 registered service providers, only firms capable of demonstrating strong risk management and compliance systems are expected to secure EU-wide operational licenses.
By combining national vigilance with a push for unified EU oversight, France is positioning itself as a regulatory leader in shaping the next chapter of Europe’s crypto landscape. For major exchanges like Binance, the message is clear, strong compliance is now the cornerstone of market access.
