French regulatory storm intensifies, Binance and other cryptocurrency exchanges face anti-money laundering compliance reviews.

France is stepping up its anti-money laundering compliance checks on cryptocurrency exchanges to determine which of the over one hundred entities registered in France as providers of crypto services will be granted EU-wide licenses in the coming months. According to sources familiar with the matter, the Prudential Supervision and Resolution Authority (ACPR) in France has already put controls in place on dozens of exchanges since the end of 2024, and due to confidentiality processes, those involved have requested anonymity. The targets of this review include companies such as Binance and Coinhouse, which have been accredited as Digital Asset Service Providers (PSAN) in France. Binance, the world's largest cryptocurrency platform, was asked to strengthen risk control during the 2024 review. Binance responded by stating that "regular on-site inspections are part of the regulatory standard procedure," while both ACPR and Coinhouse declined to comment. This review comes at a time when tensions over how to coordinate cryptocurrency enforcement are mounting within the EU, nearly ten months after the full implementation of EU cryptocurrency regulations. Last month, France, Austria, and Italy found discrepancies in regulatory implementation and urged the EU's highest market regulatory authority to directly supervise large cryptocurrency companies and tighten rules. French regulators are focusing on verifying whether companies meet PSAN registration requirements, especially in terms of the actual implementation of anti-money laundering and counter-terrorism financing controls. During inspections last year, ACPR requested Binance to strengthen its compliance and risk control measures. According to sources, French regulators typically make common demands, such as hiring more staff or improving the security of IT systems. After the inspection, ACPR usually gives companies several months to make the necessary changes. The information collected from these inspections by ACPR will be shared with the French Financial Markets Authority, and failure to comply with requirements or facing sanctions could affect a company's ability to obtain the French MiCA agreement which allows companies to provide services across the EU, with French companies required to complete their applications by the end of June 2026. Currently, only a few companies have been granted MiCA accreditation by the AMF, including financial technology company Deblock, cryptocurrency company GOin, bitcoin savings app Bitstack, and CACEIS, a subsidiary of the French Agricultural Credit Bank. The AMF has not commented on specific approval situations.