France Facing Controversy For Its Regulatory Approval Of Binance.

Binance obtained approval from France to establish a significant presence in one of Europe’s top financial capitals last month, on May 6. However, the country’s market regulator, the Autorité des Marchés Financiers (AMF), is under fire for authorizing the crypto exchange giant.

According to the Financial Times, European legislator Aurore Lalucq has asked the AMF to reconsider its judgement, which she claims provided Binance with a “guarantee of respectability.”

According to the Financial Times, the French MEP stated in a letter written to the AMF earlier in June that the regulator’s decision was:

“surprising and even worrying…, especially since many other supervisors, and not the least significant ones, have already refused to give Binance any form of registration or approval,”

Furthermore, the lawmaker stated:

“it is our job as European and national legislators to move as fast as possible to clarify the situation so that institutions can fulfill their responsibilities efficiently.”

The crypto exchange, on the other hand, saw the French license as a vital step in the company’s plan to operate as a traditional organization with a formal headquarters. Binance CEO Changpeng Zhao stated that France would “at least” act as the exchange’s regional headquarters.

Concerns about AML/CFT have fueled limits on the crypto exchange giant’s operations in Europe, and for good cause. Furthermore, the company has been chastised for its consumer-protection rules and procedures.

Earlier this month, Reuters reported that Binance enabled roughly $2.35 billion in unlawful operations between 2017 and 2021. According to the investigation, the cryptocurrency exchange was a convenient route for criminal actors to wash their cash.

The move was unexpected, according to Spanish MEP Ernest Urtasun, a member of the European Parliament’s Economic and Monetary Affairs subcommittee. “I wasn’t expecting this to happen in France,” he remarked. According to the Financial Times, “France is probably the jurisdiction that is taking the toughest stance in regulating crypto.”

Furthermore, the Financial Conduct Authority of the United Kingdom terminated the exchange’s operations in June 2021. It stated that the cryptocurrency exchange was “not capable of being effectively supervised” and cautioned that its “complex and high-risk financial products” constituted a “significant risk to consumers.”

Similarly, regulators in Singapore, Japan, Italy, and the Netherlands have banned the crypto exchange giant’s operations in their respective countries.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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