By Shannon Power, 26th May 2022
Crypto regulation in France took a big step in early May 2022 when crypto giant, Binance, was granted Digital Asset Service Provider (DASP) registration. The registration allows Binance to operate its cryptocurrency exchange in France. This establishes France as the first major European country to give regulatory approval to a crypto exchange. The bold move could secure France’s crypto exchange status and attract more crypto companies to operate in the country. Binance is now listed as a registered digital asset service provider by the French stock market (AMF) enabling it to offer trading and custody services for Bitcoin, Ether, and other cryptocurrencies.
About Binance
Chinese-owned, Binance is the largest crypto exchange globally by daily trading volume. The company handles spot trading of more than $14 billion and nearly $50 billion in derivative volumes in a single day, according to CoinGecko data. Binance’s French crypto exchange regulation marks a turning point for the company, which was previously banned by US and UK financial services authorities from operating within their markets
Why France?
Binance CEO and founder, Changpeng Zhang, has expressed a commitment to becoming the first French crypto exchange with hopes to establish European headquarters in Paris. Zhang describes crypto regulation in France as being very progressive in its adoption which made the country very attractive for them to invest in. Zhang gave a keynote at a crypto industry event in Paris in April 2022 to debut a new accelerator programme for “Web3” start-ups and announced a commitment to investing €100 million in the country.
Crypto and Binance Across Europe
France was deemed by the Binance founder to be the obvious choice for their European Headquarters as other countries on the continent were not as forthcoming with their welcoming of crypto.
For example, the U.K.’s Financial Conduct Authority banned Binance from operating in the country in June 2021. They also warned the public to be wary of cryptocurrency and digital asset investment. A similar opinion is held in Japan, and in Italy saying Binance is not authorized to provide investment services and activities in the country.
Even in China, the country in which Binance was founded in 2017, they have been limiting the freedom of the crypto industry with strict regulations being instated in recent years.
Whilst France is the first major European country to have Binance registered, the company is actively seeking registration in multiple other countries in Europe such as Sweden, Switzerland, Spain, Netherlands, and Portugal.
Conclusion
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