Binance recently launched an initiative of 100 million euros ($113 million) to develop France’s crypto and blockchain industries.
Following a year of heavy scrutiny from regulators worldwide, the world’s largest cryptocurrency exchange may be looking for a new headquarters. As part of the French initiative, other companies will participate; Ledger and education and training will be emphasised.
A choppy year of regulatory scrutiny has prompted Binance to increase its presence in France. With the help of industry group France, FinTech, the largest cryptocurrency exchange globally, is investing 100 million euros ($113 million) to support the blockchain and cryptocurrency sectors in France.
In November, Binance announced a new initiative called Objective Moon that included setting up a research and development office in France and collaborating on an incubator program for start-ups.
Binance’s French GM, David Princay, says the goal of Objective Moon is to foster and accelerate an ecosystem. “You cannot do it alone,” he said.
In addition to capturing talent, the team needs to expand its capabilities; he explained plans to open an R&D office. “Having an R&D centre is one step we need to take for our next evolution.”
The French crypto hardware firm Ledger and the educational technology company OpenClassroom are also involved in Objective Moon. Considering France’s robust fintech scene, the initiative may find fertile ground. According to Dealroom data, fintech investments have exploded in France this year with big funding rounds for companies like Lydia and Qonto.
The company has had a turbulent year in its relationships with regulators across the globe. Among its headaches were a ban by the United Kingdom’s Financial Conduct Authority and an investigation by the United States Commodity Futures Trading Commission. Most recently, it has shut down its Singapore trading platform and put an end to the trading of its digital stock tokens.
Despite its Chinese roots, Binance has been notoriously reluctant to fix itself onto a single location, relying on the decentralised principles of the crypto industry.
However, Binance’s CEO Changpeng Zhao recently spoke out in favour of regulations and stated a willingness to work with regulators while expressing an interest in establishing a base in France.
In answer to a question about whether the company’s significant investment in France heralded the establishment of its formal headquarters in France, Princay said: “We have nothing further to say.”
The company’s operations in France have not gone unnoticed by the authorities. Last month, France’s central bank governor said that Binance must have strong anti-money laundering checks before operating there.
Meanwhile, France’s digital minister Cedric O attended the announcement of Objective Moon with Binance and France FinTech. Princay told CNBC that Cedric O has made it clear that Binance is welcome to meet with them and to have them, but they are also very demanding, and this is for the best. He added that Binance is in talks with French regulators regarding licensing.
Generally, regulations regarding crypto in France and Europe are “a very positive sign for innovation,” he said. “We need to be fully scrutinised and audited to approve, and when we do, it will be a sign of trust and compliance.” “We aim to be 100% compliant in all activities and countries where we operate.”
It is often the case that cryptocurrency businesses are playing catch-up with regulation. On an EU level, markets in crypto assets (MiCA) regulations will be the next big challenge for the industry.
MiCA, which the European Council has just approved, will enhance investor protection and expand licensing and passporting for crypto firms in the area. It will be discussed in the European Parliament soon.
