France conducts anti-money laundering checks on major virtual asset exchanges

French financial authorities have launched additional anti-money laundering (AML) checks targeting major virtual asset exchanges, including Binance, as they move to secure leadership in virtual asset regulation within the European Union (EU).

On the 17th (local time), Cointelegraph reported that the French Prudential Supervision and Resolution Authority (ACPR) has been examining since last year whether Binance and multiple exchanges comply with rules related to anti-money laundering and counter-terrorist financing (CFT). According to anonymous sources, the checks are being conducted privately, and whether exchanges have strengthened their internal control systems is a key focus of the inspection.

Earlier last year the ACPR requested that Binance strengthen its risk management framework. In response, a Binance spokesperson said, "Consultations with the ACPR are part of the ongoing supervisory process for firms registered for anti-money laundering," and "such checks are routine and are standard procedures carried out simultaneously on dozens of exchanges."

French regulators plan to use this investigation to verify whether exchanges are properly implementing the EU's market order and anti-money laundering regulation (MiCA, Markets in Crypto-Assets Regulation). Companies found to have deficiencies as a result of the checks will receive remediation orders within months, and will be required to bolster internal controls, risk management, and cybersecurity personnel.

This measure coincides with the French government's moves to expand its leadership within the European virtual asset regulatory framework. Last September, the French Financial Markets Authority (AMF) said, "Differences in regulatory levels between EU countries can create an unbalanced regulatory environment for virtual asset operators," and suggested it may curb companies operating in France based on licenses obtained in other countries.