Binance’s quest to open a regional office in Paris, France, now hinges on the platform’s anti-money laundering (AML) compliance.
French financial regulators have asked Binance to focus on AML regulation before receiving approval for a regional hub in the country.
According to France’s central bank Governor Francois Villeroy de Galhau, Binance’s selection is a good indicator for the country’s financial sector, but the exchange must ensure trust and credibility.
“It’s an indication of the Paris market’s innovative dynamism, but it obviously depends on trust and credibility being maintained… That will guide the ACPR and the AMF (financial markets authority) in their actions, particularly on the critical issue of anti-money laundering,” Villeroy said.
This comes after Binance CEO Changpeng Zhao revealed that the exchange plans to establish regional hubs around the world in order to gain favor with regulators. This comes after the transaction was called into question due to alleged lax anti-money laundering laws.
As a result, Zhao noted that Paris would be a natural choice for a regional office in Europe.
According to Binance, a decentralized management style has been a major source of contention with regulators, and establishing offices is the first step toward correcting the situation.
In this vein, Zhao stated that Binance was attempting to obtain a French license within the next 12 months.
Binance is still one of the most popular exchanges.
Binance has been banned in some jurisdictions as a result of the scrutiny it has received. Despite the legal issues, the exchange remains a dominant player in the market.
According to our previous report, the platform had the highest web traffic among digital currency exchanges in October, with 171 million visitors.
Overall, Binance acknowledges the regulatory challenges, with Zhao stating that the company strives to be in good standing with regulators. As a result, the exchange has focused on hiring high-profile compliance specialists.