Exchange Binance has finally obtained authorization to operate within the European Union. The endorsement was granted by France, which gave the exchange an authorization to operate as a Platform for Digital Asset Services (PSAD).
According to an announcement, the authorization came from the Autorité des Marchés Financiers (AMF). The body, which regulates the French financial market, granted the license to Binance France SAS, the French division of the exchange.
With this, France becomes the first country in the European Union to grant such a license to Binance. The license allows the exchange to act with Cryptocurrency trading and custody services in France.
The license is a milestone for Binance as it was its first registration as a PSAD in the European Union. Last year, several countries in the block, such as Italy and Germany, banned the exchange from offering services to their citizens.
At the time, the exchange was accused of not adopting compliance practices and also acting on the sidelines of local markets. Since then, Binance has abandoned the “decentralization” stance and started to have more contact with regulators and politicians.
The biggest example of this occurred in Brazil, when the CEO of exchange Changpeng Zhao met with the then governor of São Paulo, João Dória, and the mayor of Rio de Janeiro, Eduardo Paes. Next, Binance committed to complying with Brazilian laws.
As far as the French case is concerned, the registration allows Binance France SAS to operate in France as a PSAD. At the same time, it provides regulatory protection for local users, implementing French money laundering, anti-terrorism and customer identification requirements.
“Effective regulation is essential for the mass adoption of cryptocurrencies. The French AML/CFT and related PSAD regulations put in place strict anti-money laundering requirements to live up to the high standards that are required to be regulated in France,” Zhao said.
Upon registration, Binance will significantly increase its operations in France. According to the announcement, the exchange intends to recruit up to 250 people to focus on its operations.
Framework for exchanges
The French gesture is not just a milestone for Binance, but for the market as a whole. It is the first time that the exchange has received an official license from a European bloc country. And France is the second largest economy in the entire bloc.
In this way, the French initiative tends to establish guidelines for other countries to eventually grant approval to Binance. The company has already received licenses in the United Arab Emirates, Bahrain, and recently in Puerto Rico.
Binance has in its roadmap the decision to establish a fixed global headquarters, in order to meet the demands of regulators. One of the choices is Ireland, a country that, like France, is also part of the European Union.