France Hits Binance and Coinbase with AML Checks Ahead of EU License Decisions

Core Insights - France is conducting anti-money laundering inspections on multiple crypto exchanges, including Binance and Coinhouse, as part of the process to determine which entities will receive EU-wide operating permits under the Markets in Crypto-Assets (MiCA) regulation [1][2] - The French prudential supervision authority, ACPR, has been performing on-site controls since late 2024, with specific instructions for Binance to enhance its risk controls during the examination [1][2] - Companies have until June 2026 to secure their licenses, with only a few entities, including Deblock, GOin, Bitstack, and CACEIS, having received approval so far [3] Regulatory Context - The inspections are part of a broader effort by France, Austria, and Italy to urge the EU's top markets watchdog to directly supervise major crypto companies and tighten regulations due to identified disparities in implementation across the EU [3] - Compliance checks verify adherence to conditions for PSAN registration, focusing on anti-money laundering and counter-terrorist financing controls [2] Binance's Operational Adjustments - Following a restructuring in May 2024, Binance replaced co-founder Changpeng Zhao with new shareholders to comply with French regulations that prohibit majority shareholders with criminal records [4][5] - The restructuring is part of a global project aimed at aligning with regulatory standards, as MiCA allows companies to operate across EU countries [5] Compliance Requirements - Typical demands from ACPR after inspections include hiring additional compliance staff and enhancing IT security systems, with companies given several months to comply [6] - Information collected by ACPR is shared with France's Financial Markets Authority (AMF), which is responsible for granting MiCA agreements [6]