“Not the Wild West Anymore”: Crypto Platform Binance Enjoys New Status in France

Cryptocurrency exchange Binance has received approval from the Capital Markets Authority, which officially recognizes it as a “digital asset service provider.” This new case changes a lot of things.

We are pleased to announce that Binance has been registered as a digital asset service provider by the Autorité des Marchés Financiers (AMF), with the approval ofPrudential Monitoring and Control Authority (ACPR). With this rather complicated sentence, Binance announced in a press release on May 4, 2022 that it was one of the most important news for its European activity.

The cryptocurrency exchange, one of the largest in the world, was already operating in the country: it was possible especially for French people to open an account on Binance. But the registration now allows him to carry out other activities in France legally – and above all, the assurance to financial authorities around the world that the Arab Monetary Fund has granted him the status of trust.

What is registration as a digital asset service provider?

Binance is registered as a digital asset service provider, abbreviated PSAN in the jargon. PSANs are financial intermediaries that provide various services related to investing in crypto assets, the AMF defines. These services, among others, buy/sell crypto assets against fiat currencies (euro, dollar, etc.), exchange crypto assets against other crypto assets, Crypto asset custody or access to crypto assets “, etc.

Binance. // Source: Binance

Binance is not the only organization with this registration: about thirty other platforms are recognized as PSAN, notably the French platform Coinhouse. It is up to the AMF, in conjunction with the Prudential Control and Solutions Authority (ACPR), to validate PSAN registration requests, after several tests. In particular, the fact that the platforms comply with ” Regulations related to combating money laundering and terrorist financing and that the leaders honest and competent “There is an additional step, which is approval — but so far, no crypto exchange has received it,” the AMF outlines on its site. Binance France, contacted by Numerama, said it was a goal to get this approval, but the platform wanted to continue signing up for the time being. .

It is necessary for platforms to be registered as PSAN in order to carry out certain types of activities in France. Thus, Binance can begin to communicate more actively, which it was not allowed to before. ” We can finally start a dialogue and call the French This is stated by Nomirama David Brinchai, Director of Binance France.

Why is registration important

Registration allows PSANs to run ad campaigns — and to put posters in the subway, among other things. Thus David Prinçay would like to do outreach work to make the brand known to the French, but above all, to provide education on crypto issues, he says. ” The next step is education. At the moment, only 8-12% of the population owns a cryptocurrency wallet, and if we want to scale up, we will have to educate. »

Concretely, for Binance users already in France and France, the registration with the AMF will not change much, as will the people who want to join the site now. Registration is mostly important to Binance from a regulatory point of view. Because in addition to being able to advertise, the fact of being registered with the AMF gives the platform a lot of credibility.

Binance, a platform now registered in France.  // Source: Art Rachen / Unsplash
Binance, a platform now registered in France. // Source: Art Rachen / Unsplash

The French authorities have an international reputationDavid Brinkai explains, So having a registration in France sends a strong signal to financial authorities around the world, and reassures them. Binance is in the sights of many financial regulators: the platform was partially banned in England in 2021 and had to withdraw its services from the province of Ontario, Canada. It is also suspected in Germany that it offered a product that allegedly violated the country’s tax regulations. The US judiciary has also launched an investigation into the platform, and the Japan Financial Services Agency (JFSA) issued a warning to Binance last year.

After these regulatory setbacks, the fact that France is registering Binance is excellent news for the platform – especially since it is the first European country to grant them the registration, a symbol of volume. ” France’s decision will help and reassure other organizers David Branchy says. It establishes its legitimacy Claire Palfa, Director of Blockchain and Crypto at KPMG continues. There was doubt and uncertainty about their compliance with the regulations. The fact of registering in France, removes doubts and also allows them to say that they respect the rules “.

France, the European leader in cryptocurrency?

The news is important not only for Binance: it is also important for the entire crypto sector in France. The platform has ambitions and wants to make France its headquarters in Europe. ” France has all the weapons to become a leading blockchain country in Europe David Prinçay says Binance does not want to miss the opportunity. ” That’s why we have an incubator in Terminal F, we’re setting up offices in Paris, and we’re looking to hire 250 people. »

However, barely a year ago, the platform rejected the idea of ​​a global headquarters, preferring to stay ” like bitcoin “Freedom to settle everywhere. ” When we were created, we wanted to be decentralizedDavid Brinkai admits, But now the Wild West is no longer, there are regulations. And to move on to the next step, Binance must restructure itself. And so, let her do it in France.

Will Binance’s arrival be enough to make France a leading country in the blockchain space? For Claire Palfa, her makeup is ” good news “But she is not sure that this is enough to make France a future stronghold of cryptocurrency.” You need a real existence and, above all, a complete ecosystem. There should also be positive messages from the government ”, for example in terms of taxes. The flat 30% tax on cryptocurrency will push some companies towards Switzerland and Portugal, which are more flexible in terms of taxation.

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