Binance’s AMF approval ‘incomprehensible’

Binance's AMF approval 'incomprehensible'

In a letter dated June 13, French MP Aurora Lalucq cited a report that cryptocurrency exchange Binance “is not cannot be effectively monitored“. Based on this report and other elements, he asked the AMF, the French Regulatory Authority for Financial Markets, to provide reasons justifying the approval of the swap.

Paris, France - July 29, 2021: detail of the building housing the Autorite des Marches Financiers (AMF), the French administrative body responsible for regulating financial markets

Aurore Lalucq calls on the AMF to reconsider its stance on Binance

French MP Aurora Lalucq is also a member of the Committee on Economic and Monetary Affairs of the European Parliament. On June 13, it sent a letter to the French Regulatory Authority for Financial Markets to find out the criteria the regulator relied on to agree to register Binance, authorizing it to provide its services in the French market.

In this letter, which was specifically addressed to the president of the AMF, Ms. Lalucq asked if there was a possibility for Binance’s registration has been withdrawnin case of serious and proven violations“. She called on the AMF to reconsider its decision because the cryptocurrency exchange Binance would be involved in money laundering according to the report.

Indeed, Binance would allow it laundered at least $2.35 billion in illicit funds. Aurora Lalucq carefully quoted another statement, last year’s statement from the British financial regulator. According to this statement, Binance would not be “cannot be effectively monitored“.

When the French MP was asked about her letter, she pointed out that the crypto sector was not regulated enough and that this needed to be corrected to prevent it from facilitating “criminal practices“. She added, without giving further details, that the AMF responded quickly to her letter.

Several financial regulators have issued warnings about Binance

Crypto giant Binance is currently the largest cryptocurrency exchange in the world. He owns 120 million users worldwide and processes hundreds of billions of dollars in cryptocurrency transactions every month. The stock exchange welcomed the approval received by the AMF in May, indicating that it was “milestone» and that he wants to open a regional office in France.

However, at the time the report of its involvement in money laundering was published, Binance indicated that it was not true. The exchange added that it is building a “teamthe most sophisticated cyber analysis on the planet“. However, you should know that more than a dozen financial regulators have expressed doubts about Binance’s compliance since the platform launched in 2017 in Shanghai.

These financial regulators said the stock market posed a risk to consumers and suspected it was enabling money laundering. In addition, an article published in January reported that the exchange withheld information from regulators while advocating support for oversight.

While many other regulators refused to license Binance, the AMF allowed Binance to provide its services in the French market. According to Aurora Lalucq, who is against this decision, the AMF gave “a guarantee of respectabilityon Binance by registering. The French representative wanted the regulator to reconsider its position.

Source: Reuters

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