A representation of the Binance cryptocurrency is seen in this illustration made on August 6, 2021.
Dado Ruvic | Reuters
Cryptocurrency giant Binance is strengthening its presence in France after a year of tight regulatory scrutiny.
The world’s largest cryptocurrency exchange is funding a 100 million euro ($113 million) initiative with French industry group FinTech in an effort to support the crypto and blockchain sectors in France. .
The initiative, announced in November and dubbed Objective Moon, will help Binance establish a research and development office in France, and collaborate on an incubation program for startups and training programs.
“The goal of Objective Moon is really to grow an ecosystem and nurture and accelerate an ecosystem. You can’t do it alone,” David Princay, the French GM of Binance, told CNBC.
He talked about the plan to open an R&D office. “Having an R&D center is a step we need to take for our next development.”
Ledger, a French crypto hardware company recently valued at $1.5 billion, and edtech firm OpenClassroom also participated in Objective Moon in terms of developing educational programs.
France could prove to be fertile ground for this initiative given the burgeoning fintech scene. According to data from DealerFintech investments in France have skyrocketed this year with bumper funding rounds for the likes of Lydia and Qonto.
Regulatory attention
Binance has had a tumultuous year in its relationship with regulators globally. Among its headaches was a UK Financial Conduct Authority ban and an investigation by the US Commodity Futures Trading Commission. The company also put a end transaction its digital security token and, most recently, closing its trading platform in Singapore.
Although its roots are in China, Binance has been notoriously shy about taking any position, relying on decentralization maxims associated with the crypto industry.
Binance recently changed its stance on that front, however, as CEO Changpeng Zhao spoke out. support regulation and ready work with regulatory authorities while showing interested in France as an official base of operations.
Princay was tight-lipped about whether the company’s substantial investment in France was a precursor to establishing its official headquarters there; “We don’t have anything to add on that yet,” he said.
However, the company’s moves in the country have not gone unnoticed by watchdogs. Last month, the governor of France’s central bank said that Binance must have strong anti-money laundering checks in place if it wants to establish operations in the country.
Meanwhile, France’s digital minister Cedric O was with Binance and France FinTech at the Objective Moon announcement.
“Cedric O have been very clear with us, they welcome to meet us and have us, but they are also very adamant and that’s better,” Princay told CNBC, adding that Binance is in discussions with regulators in France regarding licensing.
“It is a very positive sign for innovation,” he said of crypto regulation in France and Europe in general. “We need to be tested and thoroughly tested to get through and that’s better because when we get through it will be a sign of trust, compliance.”
“Our aim is to be 100% compliant in every activity and country in which we operate.”
Regulation often catches up with crypto businesses. At the European level, the next big challenge for the industry will be the regulation of the EU’s Cryptocurrency Assets Market (MiCA).
MiCA, recently approved by the Council of Europe, will strengthen investor protection and expand licensing and passports for crypto companies in the bloc. It will be discussed in the European Parliament in the coming months.
Spread awareness
Ariel Wengroff is editor-in-chief at Ledger and leads the company’s educational content efforts.
She told CNBC that Ledger signed up for an initiative with Binance to raise awareness about crypto, blockchain, and Web3 — a broad concept of Decentralized web service built on blockchain technology – in its home market. She said the offering of educational programs is “in the greater good” of the industry as it has grown much faster than traditional curricula.
“We’re still in the mainstream curiosity stage, and if we want to get access to mainstream adoption and let individuals get the education they deserve – let it become an open source future. , seamless and secure – then we have to get together businesses to deliver that now,” she said.
“Education in web3 shouldn’t be something that is tied to or against each other, it should be open to anyone who wants to learn about this space.”
