The Binance cryptocurrency exchange platform has received approval from the Financial Markets Authority, which has officially recognized it as a “digital asset service provider”. This new status changes many things.
” We are pleased to announce that Binance has been registered as a provider of digital assets by the Autorité des Marchés Financiers (AMF), with the approval ofPrudential Control and Resolution Authority (ACPR). It is with this somewhat intricate phrase that Binance in a press release on May 4, 2022, announced one of the most important news for its European activity.
The crypto exchange platform, one of the largest in the world, was already operating in the country: it was especially possible for French people to open an account on Binance. But the registration now allows him to carry out other activities in France – and above all to claim to financial authorities around the world that AMF has given him a trust status.
What is registration as a provider of digital assets?
Binance was registered as a Digital Asset Service Provider, abbreviated to PSAN in the jargon. PSANs are financial intermediaries that offer various services related to investing in cryptocurrencies, the AMF specifies. These services include purchase / sale of cryptocurrencies against currencies with legal tender (euro, dollar, etc.), exchange of cryptocurrencies against other cryptocurrencies, storage of cryptocurrencies or access to cryptocurrencies “, etc.
Binance is not the only organization that has this registration: about thirty other platforms are recognized as PSAN, especially the French Mint. It is up to AMF, in collaboration with the Prudential Control and Resolution Authority (ACPR), to validate PSAN registration applications after several studies. In particular, the fact that the platforms comply ” rules on combating money laundering and terrorist financing »And that the leaders are« honest and competent “, Specifies AMF on its website. There is an extra step, the one with authentication – but so far no crypto platform has received it. Binance France, contacted by Numerama, said obtaining this approval was a goal but that the platform wanted to remain on registration until further notice.
Platforms registered as a PSAN are required to perform certain types of activities in France. Binance can thus begin to communicate more actively, which was not allowed before. ” We can finally start the dialogue and get in touch with the French “, Says Numerama David Prinçay, Director of Binance France.
Why registration is important
Registration gives PSANs the opportunity to run advertising campaigns – and, among other things, put up posters in the metro. David Prinçay thus wants to do communication work to make the brand known to the French, but above all to provide teaching in crypto issues, he says. ” The next step is education. Currently only between 8 and 12% of the population have a cryptocurrency, and if we want to go higher, we will have to educate. »
Specifically, for the French and French who already use Binance, the registration with AMF will not change much, as for the people who want to join the site now. Registration is most important for Binance from a regulatory point of view. In addition to being able to advertise, being registered with AMF above all gives the platform a lot of credibility.
“ The French authorities have an international reputationexplains David Princay, Receiving a registration in France therefore sends a strong signal to financial authorities around the world and reassures them. Binance is in the eyes of many financial regulators: the platform was partially banned in the UK in 2021 and had to withdraw its services from the province of Ontario, Canada. It is also suspected in Germany of having offered a product that was allegedly in breach of the country’s tax rules. The U.S. judiciary has also launched an investigation into the platform, and the Japan Financial Services Agency (JFSA) issued a warning to Binance last year.
Following such regulatory setbacks, the fact that France is registering Binance is therefore excellent news for the platform – especially as it is the first European country to give them registration, a symbol of size. ” France’s decision will help other regulators and reassure them says David Prinçay. ” It establishes their legitimacy “, Concludes Claire Balva, Blockchain and Crypto Director at KPMG. “ There was suspicion and uncertainty about their compliance with the rules. The fact that they are registered in France is really going to sweep away the doubts and it also allows them to say that they respect the rules “.
France, European leader in crypto?
It is not only for Binance that the news is important: it is also important for the entire crypto sector in France. The platform has ambitions and wants to make France its European headquarters. ” France has all the weapons to become a leading blockchain country in Europe says David Prinçay, and Binance will not miss the opportunity. ” That is why we have an incubator at station F, we are setting up offices in Paris and we are looking to recruit 250 people. »
Yet just under a year ago, the platform rejected the idea of having a global headquarters and preferred to remain ” like bitcoin », Free to settle anywhere. ” When we were created, we wanted to be decentralizedrecognizes David Princay, but now it is not the Wild West anymore that are rules. And to move on to the next step, Binance needs to structure itself. So let her do it in France.
Will the arrival of Binance be enough to make France a leading blockchain country? For Claire Balva, their installation is ” great news “, But she is not sure this is enough to make France a future stronghold of crypto. ” You need a real presence and, above all, an entire ecosystem. There should also be positive messages from the government », For example, for tax purposes. The 30% flat tax on crypto would push some companies towards Switzerland and Portugal, which are more flexible in terms of taxation.