French Regulators said Binance Must Improve AML Compliance Prior to Establishing a Paris Headquarters
France might become Binance’s new home, but only if the company increases its efforts to ensure anti-money laundering compliance.
According to reports, the French financial regulator Autorité des Marchés Financiers (AMF) has mandated that Binance, a cryptocurrency exchange, must ensure anti-money laundering compliance in order to establish a regional centre in Paris.
Earlier last month, Changpeng Zhao, the trading platform’s CEO, characterised Paris as a “logical option” for headquarters.
Binance, the world’s biggest digital asset exchange, has been on the lookout for a new home recently. As a decentralised network with “no headquarters and no boundaries,” it is now reorganising and seeking for a home, as the CEO recently revealed. However, the corporation is having some difficulties with worldwide authorities, which might prove to be a roadblock.
Currently, France seems to be a viable alternative for Binance to locate its worldwide headquarters, given the company’s lack of run-ins with local regulators. Additionally, Changpeng Zhao recently described Paris as a “logical possibility” for growth.
According to a Reuters article, relocating under the Eiffel Tower might not be as simple as it seems, as local regulators urge that Binance beef up its anti-money laundering measures.
“It is indicative of the Paris market’s inventive vitality, but this certainly relies on the maintenance of confidence and trustworthiness. That is what will lead the ACPR and the AMF (financial markets authority) in their operations, particularly on the critical problem of anti-money laundering,” French central bank Governor Francois Villeroy de Galhau said.
Zhao recently informed the local press that his business aimed to get regulatory approval from the AMF within six to twelve months. He continued by noting that 600 of Binance’s 3,500 workers are in charge of compliance and contacts with different authorities.
Collaboration with France Fintech
In early November, the world’s largest cryptocurrency exchange and a non-profit organisation – France FinTech – announced a partnership to develop a €100 million ($116 million) blockchain initiative in Europe. It is called “Objective Moon” because its principal objective is to aid in the growth of the digital asset business in France and across Europe.
Zhao said at the time that the move will propel France to the top of the bitcoin space: “At Binance, we recognise the high calibre of French and European technology, crypto, and blockchain talent, and we are confident that by establishing significant operations and investment in France, we can significantly contribute to making France and Europe the leading global player in the blockchain and cryptocurrency industries.”
Ireland is another nation that may become Binance’s future home. Binance established three firms there earlier this year: Binance (APAC) Holdings, Binance (Services) Holdings, and Binance Technologies.
It just built a fourth, dubbed Binance Exchange (Ie), alluding to a possible future settlement in the nation. When asked whether Ireland is included in such plans, Zhao said, “Yes, it is.”
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