People waving the French flag in front of the Louvre. Photo: Alice Triquet. The central bank of France, through its president François Villeroy de Galhau, announced that it will put pressure on cryptocurrency exchanges operating in the country, including Binance, which must obtain a new license operating. In all, it is estimated that 60 companies in the sector receive new recommendations from the French monetary authority, and they must adapt to the process as soon as possible. According to Bloomberg Law, the new rules are stricter and must be complied with. However, the measure may change the image of France in the sector, which was being built as a pro-cryptocurrency country.
France’s central bank wants to impose tougher measures against cryptocurrency exchanges
THE blame for the new measures announced by the president of the central bank of France is recent market volatility. Brokers went bankrupt, like FTX, in addition to cryptocurrencies like Terra (LUNA) leaving trails of losses. With several companies operating in French territory having only light licenses, the government would be concerned about problems in the sector. Thus, the French monetary authority does not want to wait for European rules for the sector, anticipating itself to demand compliance with stricter obligations. No cryptocurrency exchange operating in France has such a license, which must be provided from 2023 onwards, to contain any crisis in the market. Previously, stricter rules were optional for companies in the cryptocurrency market. In order to regulate the sector, the Autorité des Marchés Financiers (AMF) in France must take care of the new measures, which are still unclear about how they may affect the cryptocurrency market in the country in the coming months.
Binance Says Helping Authorities, But Didn’t Comment on Rules
In publications after the repercussion of the measures in France, Binance did not release any specific statement about the new mandatory licenses in the country. It is worth remembering that France is part of Binance’s strategy to be pro-regulation. In recent months, for example in May 2022, the Binance Becomes a Regulated Digital Asset Service Provider in France. In 2021, the brokerage even announced the territory as being its possible global headquarters. After the French case gained repercussions, however, the brokerage disclosed its actions involving training of authorities and cooperation with investigations in several other countries.
“Over the past year, Binance has collaborated with global law enforcement agencies around the world to prevent, investigate and combat cybercrime.”
Over the past year, #Binance collaborated with global law enforcement agencies worldwide to prevent, investigate and fight cyber crimes. 🧵 Here’s a thread highlighting our efforts to date. pic.twitter.com/g3rc0cw0eT
— Binance (@binance) January 5, 2023
In Brazil, Binance trained investigative agents at the Rio de Janeiro Public Ministry. The country is another one that the brokerage seeks to regularize its operations, since the Cryptocurrency Law was sanctioned by former President Jair Bolsonaro in December 2022 and should come into force in up to six months.
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