According to reports, the French financial regulator Autorite des Marches Financiers has stated that Binance, a cryptocurrency exchange, must comply with anti-money laundering regulations in order to establish a Paris regional hub.
Changpeng Zhao, the CEO of the trading venue, described France as a “natural choice for positioning headquarters” earlier this month.
France is not ready for Binance
Binance, the largest digital asset exchange, has been searching for a new home recently. It was established as a decentralized platform without a headquarters or borders. The CEO explained that it is currently changing its structure and searching for a new home. The company is facing issues with global regulators that could prove to be a hindrance.
France seems like a good option for Binance to establish a global headquarters, since it has never had to deal with local watchdogs. Changpeng Zhao has recently described Paris as a “natural choice”, for such expansion.
A Reuters report says that settling under the Eiffel tower would be difficult as local watchdogs insist Binance must improve its AML compliance.
It’s a sign that the Paris market’s innovative energy is evident, but trust and credibility must be maintained. Francois Villeroy de Galhau, Governor of the French central banking, said that this is what will guide ACPR (financial market authority) and AMF (financial regulators authority) in their actions, particularly on the crucial issue of anti-money laundering.
Zhao stated that Zhao’s company was hoping to receive a regulatory approval from the AMF within 6 to 12 months. He said that 600 of the 3,500 Binance employees are responsible for compliance as well as relationships with regulators.
The Partnership with France Fintech
The leading cryptocurrency exchange, France FinTech, and a non-profit organization – created a EUR100m ($116 million) European blockchain project. It is called “Objective Moon” because its primary goal, which is to support Europe’s digital asset development, has been given the name.
Zhao had predicted that Zhao’s move would make France a leader in the cryptocurrency industry.
Binance recognizes the high quality of French and European crypto, tech, and blockchain talent. We are confident that by launching Binance’s major operations in France and investing in France, we will significantly contribute to making France and Europe the global leader in the blockchain and crypto industry.”
What about Ireland?
Another country that could be Binance’s new home is Ireland. Three companies were established by the trading venue earlier this year: Binance (APAC) Holdings and Binance (Services) Holdings.
It established a fourth, called Binance Exchange (Ie), a few days ago to hint at a possible future settlement in the country. Zhao replied, “Yes, it does.”
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