French Regulator Faces Backlash Over Binance Approval; Here’s Why

In May, Binance, the world’s largest cryptocurrency exchange received a green flag from the French regulator. However, the watchdog’s this move is now facing heavy backlash from the European lawmaker.

Approval came as a surprise

According to a report from Financial Times, Aurore Lalucq, French MEP has asked the Autorité des Marchés Financiers (AMF) to re-evaluate its decision. She added that the May ruling gave the crypto exchange a “guarantee of respectability”.

The report mentioned that earlier this month, the lawmaker sent a letter to the regulator regarding this move. Lalucq highlighted that this decision was surprising and worrying. This commitment landed when major supervisors have already refused to provide any kind of approval or registration to the Binance.

To this, the French regulator denied disclosing its communication with the lawmakers. Meanwhile, Binance said that it will go above the set industry standards to detect bad actors. It will pursue to fulfill all required demands set by regulators.

Talking to FT, Lalucq highlighted that it’s their job as legislators to move as fast as possible to get clarity over the situation. This will lead the institutions to fulfil their responsibilities effectively.

Will Binance lose its bid?

Back in May 2022, AMF decided to list the Binance subsidiary as a digital assets service provider. This crucial breakthrough came after months long efforts done by the crypto exchange. Changpeng Zhao, Binance chief even had a meeting with the French President Emmanuel Macron.

The world’s largest crypto exchange’s entry into the nation stands in contrast with the major jurisdictions. Binance has been criticized for its policies to shield consumers and avoid money laundering through its platform.

Spanish MEP Ernest Urtasun commented that its registration caught others off guard.

I wasn’t expecting this to happen in France. As a jurisdiction, France is probably the jurisdiction that is taking the toughest stance in regulating crypto, he added