Binance Faces Trouble In France Due To Mandatory License Rule

Crypto companies registered or currently seeking registration in France to face more stringent regulatory pressure. Bank of France Governor Francois Villeroy de Galhau raised concerns over crypto firms such as Binance receiving less stringent “registration” from France’s Financial Markets Authority (AMF). France needs to move to a mandatory licensing scheme for crypto firms, he asserts.

France Seeks Obligatory License For Crypto Firms

The French central bank Governor Francois Villeroy de Galhau is pressing for stricter regulatory requirements for crypto firms in France. He said some 60 firms, including Binance, have received less stringent “registration” from the Autorité des Marchés Financiers (AMF).

“All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration,” Villeroy said Thursday in a speech to the financial sector in Paris.

Crypto exchange Binance manages operations across Europe from its headquarters in Paris, France. It received regulatory approval to operate as a Digital Asset Service Provider in France in May last year.

Since then, Binance CEO “CZ” increased crypto exchange activities in France and met with officials to promise compliance with regulations and anti-money laundering laws. He even referred to France as Europe’s crypto hub.

Villeroy believes turmoils in the crypto market and crypto price volatility last year are serious concerns. Therefore, France should not wait for European Union’s MiCA to come into effect before making it obligatory for Digital Asset Service Providers to obtain licensing from authorities.

In order to obtain a license, crypto firms must comply with certain requirements in terms of organization, financial resources, and business conduct.

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Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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