France has emerged as one of the few countries pushing forward with a complete regulatory framework for crypto assets, even as global oversight remains fragmented.
According to a new review from the Financial Stability Board (FSB), the uneven implementation of its Global Crypto-Asset Framework has allowed crypto firms to exploit regulatory loopholes, a trend that France is actively trying to counter.
France pushes ahead on full regulatory alignment
The FSB’s analysis placed the European Union, Hong Kong, and Japan at the top tier of global regulatory readiness, with France standing out as a leading EU jurisdiction where rules are not just proposed but close to being fully enforced. Under the EU’s Markets in Crypto-Assets (MiCA) framework, France’s financial regulator (AMF) has accelerated licensing requirements, compelling exchanges and stablecoin issuers to comply with strict anti-money laundering and consumer protection standards.
This proactive stance contrasts sharply with other major markets still lagging in enforcement. Countries like the U.S., India, and China remain in early-stage regulation or partial adoption, creating what the FSB calls “opportunities for regulatory arbitrage”, where crypto firms seek the most lenient jurisdictions to operate from before expanding globally.
Supervision of Binance and Coinhouse amid tighter crypto oversight
France’s banking regulator, ACPR, has reportedly stepped up reviews of registered digital asset service providers, including Binance and Coinhouse, as part of its broader oversight of the crypto industry. According to sources familiar with the process, the ACPR requested last year that Binance, the world’s largest crypto exchange, strengthen its internal risk controls. These ongoing examinations form part of France’s standard regulatory monitoring for approved entities under the nation’s PSAN framework.
In response, Binance stated that “periodic onsite inspections are a standard part of the supervision of regulated entities,” confirming its cooperation with French authorities. The ACPR and Coinhouse declined to comment on the matter. The move underscores France’s determination to maintain strict compliance standards ahead of the full rollout of the EU’s MiCA framework, reinforcing its position as one of Europe’s most proactive crypto regulators.
Fragmented oversight challenges global stability
The FSB report warned that inconsistent oversight across nearly 40 jurisdictions threatens financial stability and leaves regulators ill-equipped to monitor cross-border risks. While France and its EU partners advance coordinated supervision, the FSB found that enforcement tools elsewhere are “fragmented, inconsistent, and insufficient.”
This lack of harmonization allows companies to engage in what European regulators describe as “forum shopping”, a practice where crypto businesses register in lightly regulated countries to avoid stricter markets like France.