Breaking: Binance Faces French AML Crackdown - Regulatory Storm Hits Crypto Giant

French authorities launch sweeping anti-money laundering investigation targeting Binance and multiple cryptocurrency exchanges.

The Regulatory Onslaught

French financial watchdogs are turning up the heat on crypto platforms operating within their jurisdiction. The probe focuses squarely on compliance with Europe's stringent anti-money laundering protocols—the same rules traditional banks have been dodging for decades.

Exchange Under Fire

Binance finds itself in familiar territory, facing yet another regulatory showdown. The world's largest crypto exchange continues navigating the global compliance maze while maintaining its dominant market position.

Industry-Wide Implications

This investigation signals France's hardening stance toward digital asset regulation. Other exchanges operating in the region are likely reviewing their compliance frameworks—or at least they should be.

Market observers note the irony: traditional financial institutions routinely settle for billions while crypto faces existential scrutiny over potential compliance gaps. Welcome to regulatory theater—where the penalties are made up and the rules don't apply equally.

Key Insights:

• Binance and other crypto exchanges face anti-money laundering (AML) probe in France.
• ACPR of the Bank of France is leading the investigation as part of broader oversight.
• Non-compliance could result in sanctions or denial of EU-wide licenses by June 2026

Binance and other crypto exchanges are facing a broader anti-money laundering (AML) and compliance framework, and risk control checks as part of broader oversight across exchanges in France, according to sources.

French regulators seek to determine which crypto services firms among 100 entities registered are eligible for European Union-wide permits in the coming months.

ACPL Investigates Binance and Other Crypto Exchanges

Binance and Coinhouse are among hundreds of crypto exchanges under AML probe by ACPR, the French prudential supervision and resolution authority under the Bank of France.

The Prudential Supervision Authority is investigating compliance frameworks, risk controls, and anti-money laundering systems of firms offering crypto services, Bloomberg reported on October 17.

The tightening of controls started late last year, according to people familiar with the matter. Notably, the French regulator last year told Binance to strengthen its risk controls under the Markets in Crypto-Assets (MiCA) Regulation.

Binance says it is cooperating fully and complying with EU and local regulations. Non-compliant firms could face sanctions or denial of EU-wide licenses by June 2026.

Notably, Deblock, GOin, Bitstack, and Credit Agricole-owned CACEIS have received approval so far. The regulators aim to ensure that exchanges are fully compliant with EU-level AML and counter-terrorist financing requirements before receiving MiCA authorization.

Binance’s History with AML Compliance

Regulators have warned Binance of violating AML and KYC earlier. The crypto exchange and its founder Changpeng “CZ” Zhao agreed to money laundering charges by the U.S. DOJ and settled with $4.3 billion.

The crypto exchange has faced violation charges in France and Australia. However, the drop of the US SEC v. Binance by the TRUMP administration has prompted global regulators to review amid growing crypto adoption.

Earlier this week, South Korea’s Financial Intelligence Unit (FIU) approved Binance’s acquisition of Gopax after two years.

Crypto Market Liquidations Hit $1.2B

The crypto community reacted cautiously to anti-money laundering investigations on Binance. Fears mount as Bitcoin and ethereum prices tumbled below $104K and $3,700, respectively.

The crypto market saw more than $1.2 billion in liquidations in the last 24 hours, according to Coinglass data. Notably, nearly $920 million in long positions and $210 million in short positions were liquidated.

This is turning into a bigger crypto market crash amid continued liquidations with no signs of buy-the-dip. More than 305K traders were liquidated in the last 24 hours, with the largest single liquidation order of ETH-USD worth $20.42 million on Hyperliquid.

As per data, BTC, ETH, SOL, XRP, HYPE, DOGE, BNB, BEL, XPL, ASTER, and KGEN recorded the most liquidations. Notably, over $400 million was liquidated across top crypto assets in 4 hours.

However, it’s worth noting that the BNB price, often called Binance coin, has recorded a robust rally over the past few weeks, hitting a new all-time high.