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

France is conducting anti-money laundering (AML) inspections on dozens of crypto exchanges, including Binance and Coinhouse, as regulators determine which of over 100 registered entities will receive EU-wide operating permits under the Markets in Crypto-Assets (MiCA) regulation.

According to Bloomberg, the French prudential supervision authority, ACPR, has been conducting on-site controls since late 2024, with Binance instructed to strengthen its risk controls during the examination.

“Periodic onsite inspections are a standard part of the supervision of regulated entities,” Binance stated.

The checks verify compliance with conditions for PSAN (digital asset service provider) registration, particularly testing anti-money laundering and counter-terrorist financing controls.

Failure to address ACPR findings could lead to sanctions or compromise a company’s ability to obtain MiCA agreements from France, which allows firms to operate across all 27 EU member states.

Companies have until June 2026 to secure the license, with only Deblock, GOin, Bitstack, and Credit Agricole-owned CACEIS receiving approval so far.

The inspections come as France, Austria, and Italy have urged the EU’s top markets watchdog to directly supervise major crypto companies and tighten rules, following the identification of implementation disparities across the bloc.

Binance’s History in French

Last year, Binance replaced co-founder Changpeng Zhao with two new shareholders, Yulong Yan and Lihua He, in May 2024, to maintain its operational status in France after Zhao’s guilty plea for violating U.S. banking laws.

French regulations prohibit majority shareholders with criminal records.

Zhao previously owned 100% of Binance France. The restructuring forms part of a “global restructuring project” aimed at aligning with regulatory standards, as MiCA enables companies to “passport” their licenses across EU countries.

France serves as Binance’s strategic European hub despite facing two investigations from French prosecutors over potential money laundering and unauthorized advertising.

ACPR’s typical demands following inspections include hiring additional compliance staff and strengthening IT security systems, with companies receiving several months to comply.

The information collected by ACPR is shared with France’s Financial Markets Authority (AMF), which grants MiCA agreements.

Earlier this year, Australia’s financial intelligence agency, AUSTRAC, directed Binance Australia to appoint external auditors after identifying “serious concerns” with anti-money laundering controls.

CEO Brendan Thomas emphasized that “businesses can have systems that apply to multiple jurisdictions—but they need to reflect local regulatory requirements.“

However, Binance told Cryptonews that the firm has “engaged openly and transparently with AUSTRAC over the past several months.”

The exchange claims to employ “over 1,200 team members—nearly 22% of global workforce—in compliance-related functions, with spending projected to increase 33% this year.”

Yesterday, the exchange also completed its acquisition of South Korean exchange Gopax after a two-year regulatory holdup, marking its return to Korea’s market.

MiCA’s Enforcement Disparities Across Europe

In contrast to Europe, back in June 2023, Coinbase agreed to pay $100 million to settle complaints regarding “historical shortcomings” in its regulatory compliance work with New York’s Department of Financial Services.

The settlement included a $50 million penalty and a $50 million commitment to compliance program investments over a two-year period.

The exchange has since developed crypto-focused anti-money laundering tools and an automated Transaction Monitoring System, following investigations that began in 2021.

For exchanges operating in Europe, such as OKX, regulators are considering penalties against the exchange after hackers allegedly laundered $100 million in stolen Bybit funds through its Web3 platform.

However, the problem lies in authorities still debating whether OKX’s integrated services fall under MiCA regulations, with some recommending permit revocation and operational restrictions.

Amid Eurepo’s unclear regulatory enforcement, France has approved Lightning Stock Exchange (Lise) as the nation’s first fully tokenized equity exchange in October, securing a DLT TSS license under the EU’s DLT Pilot Regime.

The platform integrates the roles of Multilateral Trading Facility and Central Securities Depository on a single, distributed ledger, enabling instant trading and settlement.

Lise plans to host its first IPOs in early 2026, targeting small and mid-cap enterprises that have traditionally faced barriers in the public market.

The approval positions France as a European leader in tokenized securities as real-world asset tokenization surged past $33.9 billion, up over 10% in the past month.

The post France Hits Binance and Coinbase with AML Checks Ahead of EU License Decisions appeared first on Cryptonews.