French Legislator Calls for Review of Binance Approval

French Legislator Calls for Review of Binance Approval

TL;DR

  • A French legislator suggests reconsidering Binance's approval.
  • The legislator was concerned about potential problems with the trade.
  • Regulators are positive for Binance license in the country.

A French legislator has called for a review of the approval granted by the authorities to allow Binance to operate across the country. Binance has announced that it has obtained a license to operate in France. In the statement, the company noted that it is delivering on its promise to work with regulators and provide easy access to users around the world. Recently, the approval regulator, the AMF, has come under fire from investors and analysts for approving the exchange giant. 

French legislator was concerned about the approval

In a recent document published by the Financial Times, a list of key European lawmakers, notably Aurore Lalucq,  asked the regulator to recall on its decision. According to the French lawmaker, she is asking why the regulator is promising the care of the crypto exchange.

According to the letter written by the French legislator earlier this month, the exchange's approval has shocked and raised concerns. In the letter, she said that the reason is that most of the exchanges in the world have rejected this exchange's request for approval. She noted that the agency now needs to act quickly and stay ahead of the game to ensure the situation is under control so other agencies can do their jobs without issue. 

Binance Regulatory Approval Issues

In its announcement, Binance noted that the move to France was the foundation for the start of the move to find headquarters. According to an analysis by Changpeng Zhao at the time. France will be the company's headquarters throughout the European region. European regulators have raised valid concerns about the lack of AML on crypto exchanges, which has prompted restraint by regulators. The company has also been repeatedly called out for choosing to protect users instead of handing them over to the authorities.

A few weeks ago, Binance made headlines by helping malicious actors raise $2.3 billion illegally through its exchange through 2021. The report claims that malicious actors used the exchange to clean up their shady funds. This is one of the reasons for the outrage when France decided to provide the license to Binance. While Binance has encountered issues across Europe and other regions, it is growing significantly in other regions. Italy has provided Binance with a license to operate in the country. This license follows the previous one approved in Dubai.