Binance gets licence in France as it tries to woo Europe
Binance has registered its services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
After a year of heavy regulatory scrutiny, the new approval will help the crypto giant in boosting its operational plans across the European continent.
The new license allows Binance to offer regulated services under legislation governing operations of digital asset service providers (DASPs), namely France’s PACTE law, one of the first crypto legislative packages passed in Europe.
The world’s largest cryptocurrency exchange by trading volume has been already on the hunt for new headquarters in France. For this purpose, they financed a 100 million euro initiative together with a local nonprofit entity to support the blockchain and cryptocurrency sector in France.
Binance France has secured a digital asset service provider registration, which enables its Paris-based business to offer trading and custody services for cryptocurrencies on its platform. It also helps boost Binance’s ambitions in Europe after it has been on shaky ground last year, with regulators in the UK and elsewhere putting the exchange under intense scrutiny.
France’s Pacte Law regulates all crypto-active players
Changpeng Zhao (CZ), founder and CEO of Binance, said: “Effective regulation is essential for the mainstream adoption of cryptocurrency. The French DASP and AML/CFT regulations put in place stringent anti-money laundering and fit and proper requirements to meet the high standards necessary to be regulated in France.
David Princay, CEO of Binance France, commented: “The registration of Binance France as a DASP is a key milestone for crypto in Europe. In particular, the new levels of protection for AML will help grow crypto adoption in France and Europe. Greater adoption will help bring better liquidity to the market, which will be welcomed by users and the community in particular.”
France’s Pacte Law encompasses a very broad range of measures covering many aspects of all crypto-active players. The current laws require cryptocurrency exchanges as well as custodian providers to undergo a mandatory AMF registration and obtain a certification to be granted by the French watchdog. France’s primary regulator confirmed that it is already involved with other crypto-related operators such as exchange platforms, custodians, and asset managers.
Previously, France introduced its own guidelines governing the ICOs and similar token sales earlier in 2018 and then proposed legislative amendments to put cryptocurrency-related entities under the legislative purview of its financial watchdog.
Furthermore, the framework comes with hefty fines for those who fail to comply, but will not reimburse investors for their losses as it happens with compensation funds that cover traditional investments.