#What is the current state of AML inspections for crypto firms in France?
French authorities are actively enforcing anti-money laundering regulations on cryptocurrency firms, including prominent players like Binance. These inspections are part of a broader review of compliance among digital asset service providers registered in the country.
The Autorité de Contrôle Prudentiel et de Résolution, which serves as France's prudential regulator, has urged Binance to enhance its compliance measures. This involves improvements to their compliance systems and the expansion of their risk management teams. The regulator's primary objective is to ensure that crypto exchanges fully adhere to stringent EU standards on anti-money laundering and counter-terrorist financing before they can gain authorization under the Markets in Crypto-Assets regulation, often referred to as MiCA.
#How does the inspection process impact crypto firms?
After the ACPR conducts its inspections, it shares its findings with the Autorité des Marchés Financiers, the country’s markets regulator. Companies are allowed a grace period to address any compliance deficiencies discovered during the audits. However, firms that do not comply with these mandates could face penalties or risk being disqualified from the MiCA licensing process, which is essential for operating within the EU single market.
As of now, only a handful of firms, including Deblock, GOin, Bitstack, and CACEIS, have successfully secured MiCA approval. This underscores the significant challenges that crypto firms face in navigating regulatory compliance while working to establish their presence in France and beyond.