It is Binance’s intention to offer more services to its French clients and to expand its operations in Europe, yet there are many challenges ahead. In an effort to restore investor confidence in the country’s financial markets, a French lawmaker has urged authorities to reconsider their “incomprehensible” decision to approve cryptocurrency exchange Binance last month.
First Burdens Rising
It has recently been reported by the Financial Times that French MEP Aurore Lalucq, the chairman of the European parliament’s Committee on Economic and Monetary Affairs, has asked the Autorité des Marchés Financiers (AMF) to review its ruling, which she claimed gave Binance a “guarantee of respectability.”
Lalucq’s comments have been noted in the report as part of further concerns that have been raised to the AMF following their decision in May to register one of Binance’s subsidiaries as a digital assets services company.
In France, the Binance trading platform has received a warm welcome, but it is not doing so well in other countries.
There have been a number of federal agencies investigating the company in the United States, including the IRS, the Department of Justice, and the Securities and Exchange Commission.
Binance has all the signs of being a high-risk customer, according to the Financial Conduct Authority in the U.K., which stated that Binance could not be effectively supervised due to its complex and high-risk financial products.
Financial Conduct Authority officials indicated earlier this month that they were concerned about a potential risk posed to consumers by Binance’s partnership with Paysafe’s network in the United Kingdom.
That deal was initially seen as a way to reforge the connection between Binance and the British financial system after the company lost access to the Faster Payments network. That happened when the FCA issued a consumer alert against the exchange, saying it had to “stop all regulated activities in the country.”
The Financial Times obtained a letter from Lalucq to the AMF in which he stated that the regulatory agency’s decision was surprising and even concerning, especially since a number of other supervisors, including some of the most important ones, have refused to register or approve Binance.
The recent challenge for Binance about operating in France isn’t something new. Many cryptocurrency-related businesses have challenges when the regulation comes in. but the overall trend shows more and more countries are becoming familiar with the industry. We can hope that regulations become easier for businesses in the future and that the whole digital ecosystem accepts crypto services.