French MEP calls a decision to approved the crypto exchange Binance incomprehensible

The French market regulator sees itself because of its decision to approve the Krypto exchange Binance last month, confronted with a counter-reaction, whereby a European legislature describes the decision of the authority as "incomprehensible".

aurore Lalucq, French MEP and member of the European Parliament's Committee and currency, asked the authorité of the Marchés Financier (AMF) to review its judgment of May, which in her opinion gave a "guarantee of seriousness".

Your comments reflect on the concern about the May decision of the regulatory authority based in Paris to register a subsidiary of Binance as a service provider for digital assets. The verdict was followed by months of efforts by the world's largest stock exchange for digital assets to bring French authorities to court, including President Emmanuel Macron, who in November 2021 with Changpeng Zhao, the CEO of Binance, met.

The warm welcome from France was in blatant contrast to other important jurisdiction, in which Binance was criticized for concerns about his guidelines and procedures to protect consumers and to prevent money laundering on its massive crypto trading platform. According to CryptoCCOMPARE data, the stock exchange processed more than $ 2 trillion in cash and derivative business last month, but is not regulated at the total group level.

The British Financial Conduct Authority said in June last year that the stock exchange was "unable to be effectively supervised" and warned that its "complex and risky financial products" were "a considerable risk for consumers". The supervisory authorities in Singapore, Japan, Italy and the Netherlands also warned that Binance offered unregulated services in their markets.

In a letter that was sent to the AMF at the beginning of this month and the Financial Times, Lalucq said that the supervisory authority's decision was "surprising and even worrying.. Especially since many other supervisory authorities, and not the most insignificant, have already refused to issue any form of registration or approval".

The AMF said that she generally did not comment on her communication with MPs. Binance said that "continues to go beyond the industrial standards to recognize bad actors" and "continue to meet all the requirements of the regulatory authorities".

Landing in France was regarded as a key development for the intention of Binance, from a extensive decentralized structure in which it has no formal headquarters to convert to a more conventional unit. According to Zhao, France would "at least" act as regional headquarters of the stock exchange.

But his registration surprised others. "I did not expect this to happen in France. As a jurisdiction, France is probably the jurisdiction that takes the toughest attitude in regulating crypto," said Spanish MEP Ernest Urtasun, who is also a member of the Committee for Economics and Currency of the European Parliament.

Nicolas Louvet, managing director of the French crypto trading platform Coinhouse, described the meeting of Binance with Macron as "an unprecedented red carpet that had never been rolled out for French actors".

The stock of the stock exchange in the European markets was different. Last year, the Italian market supervisory authority warned that Binance is not authorized to offer local securities services.

In May, however, Binance announced that it has received approval as a provider of cryptocurrency services in the same country by another supervisory authority that covers financial intermediaries. The group also made roots in the Golf after having secured cryptoasset licenses from both Dubai and Bahrain at the beginning of this year.

lalucq told the Financial Times that "it is our job as a European and national legislator to clarify the situation as soon as possible so that the institutions can perform their tasks efficiently".