France has launched a sweeping examination of cryptocurrency exchanges operating within its borders, subjecting major platforms including Binance and Coinhouse to intensive anti-money laundering inspections as regulators determine which firms will receive coveted European Union-wide operating permits.

The French prudential supervision authority, known as ACPR, has been conducting on-site controls of dozens of exchanges since late 2024, according to multiple people familiar with the matter who spoke to Bloomberg.

The inspections focus on verifying compliance with anti-money laundering and counter-terrorist financing regulations, which will determine whether firms can operate across all 27 EU member states under the Markets in Crypto-Assets regulation.

High Stakes for Industry Giants

The world's largest cryptocurrency exchange by trading volume, Binance, was specifically instructed during its inspection to strengthen compliance and risk controls, one person familiar with the matter said. The demands typically include hiring additional compliance staff and enhancing IT security systems, with companies generally given several months to address identified deficiencies.

"Periodic onsite inspections are a standard part of the supervision of regulated entities," a Binance spokesperson said in a statement. The company, which established its European headquarters in Paris and obtained PSAN registration in May 2022, has faced ongoing investigations in France since February 2022 regarding alleged money laundering and unauthorized operations before receiving proper licensing.

Coinhouse declined to comment on the inspections. ACPR also declined to provide details, citing the confidential nature of supervisory activities.

A Stringent Approval Process

The stakes could not be higher for crypto firms seeking to expand in Europe. More than 100 entities are currently registered as digital asset service providers in France under the PSAN designation, yet only four companies have successfully obtained MiCA authorization from the French Financial Markets Authority as of October 2025.

The approved firms include Deblock, a fintech company offering integrated banking and crypto services; GOin, a crypto asset manager; Bitstack, a Bitcoin savings application; and CACEIS, the institutional services subsidiary owned by Credit Agricole that became the first French bank to secure the authorization in June 2025.

Companies have until June 30, 2026, to obtain MiCA approval to continue offering services to French and European customers. Failure to secure authorization or address ACPR findings could result in sanctions and exclusion from the European market.

The information collected during ACPR inspections is shared with the AMF, which grants the final MiCA agreements. This two-step process has created a stringent gateway for crypto firms seeking to operate across the EU's unified market.

France Pushes for Centralized EU Oversight

The French inspections come as the country leads a coordinated push for stricter crypto regulation across Europe. In September 2025, France joined Austria and Italy in calling on the European Securities and Markets Authority to assume direct supervision of major crypto-asset service providers.

The three national regulators warned that the first months of MiCA implementation revealed "major differences" in how member states apply the regulation, potentially allowing firms to shop for lenient jurisdictions. Bank of France Governor François Villeroy de Galhau has been particularly vocal, arguing that centralized oversight at the European level would be more efficient than having 27 national authorities build expertise separately.

"This would provide a key impetus towards having a capital market in Europe that is more integrated and globally competitive," ESMA Chair Verena Ross told the Financial Times in October 2025.

The proposal has drawn resistance from smaller EU nations like Malta, Luxembourg and Ireland, which have become hubs for crypto licensing and fear losing competitive advantages. Malta's Financial Services Authority warned that centralization "would only introduce an additional layer of bureaucracy."

A Watershed Moment for Crypto in Europe

The French crackdown signals a broader shift in how Europe approaches cryptocurrency regulation. The MiCA regulation, which became fully applicable in December 2024, represents the world's most comprehensive regulatory framework for digital assets, establishing uniform rules for crypto-asset issuers and service providers across the EU.

Under MiCA, crypto firms that obtain authorization in one EU member state can "passport" their services across the entire bloc without needing separate approvals in each country. This creates powerful incentives for companies to secure licenses but also raises concerns about regulatory arbitrage if some countries maintain lower standards.

France has taken an aggressive stance against unauthorized operators. The AMF has blacklisted 22 websites offering illegal crypto services in 2025 alone, warning investors to verify platforms against official whitelists before investing.

The regulatory pressure extends beyond France. Australia's financial intelligence agency AUSTRAC directed Binance Australia to appoint external auditors in August 2025 after identifying "serious concerns" with anti-money laundering controls.

What's Next for Crypto Firms

As the June 2026 deadline approaches, crypto companies face a critical decision point. Those that fail to obtain MiCA authorization will be barred from serving European customers, cutting them off from one of the world's largest and wealthiest markets.

Industry observers expect a surge in applications as the deadline nears, potentially overwhelming national regulators. The slow pace of approvals so far - just four in France despite more than 100 registered entities - suggests many firms may struggle to meet requirements.

The outcome of these inspections and the broader debate over centralized EU oversight will likely shape the future of cryptocurrency regulation not just in Europe, but globally, as other jurisdictions look to MiCA as a potential model for their own frameworks.

For now, France's message to crypto firms is clear: compliance is no longer optional, and the era of regulatory arbitrage in Europe is coming to an end.