French regulators granted Crypto.com approval to provide digital asset services in the country, the crypto exchange announced Wednesday. The move comes a month after Binance went through the same process in France, which continues to lead crypto regulation in Europe.
Crypto.com Continues to Expand Aggressively Despite Market Headwinds
Singapore-based crypto exchange Crypto.com obtained approval to operate in France, the firm said in an official announcement. After getting clearance from regulators, Crypto.com registered as a Digital Asset Service Provider (DASP), allowing it to provide a set of products and services in France in line with the country’s regulations.
“The European market is central to the long-term growth and success of Crypto.com and we are tremendously proud to now receive registration in France from the AMF. We look forward to continuing to work with the AMF and the ACPR as we introduce our products and services in France, offering users a comprehensive, safe and secure crypto platform.”
– Kris Marszalek, CEO of Crypto.com
Crypto.com underwent a strict review by French regulators to minimize risks around money laundering and the finance of terrorism. The crypto space has been plagued with money laundering practices and hacks in the past two years, which has led to the sanctioning of services like Tornado Cash.
The approval marks another important step for Crypto.com’s expansion, which remains one of the world’s fastest-growing crypto exchanges in the world. Just last month, the firm registered in the U.K., shortly after getting its licenses in South Korea and Italy.
The firm has been foraying into new markets amid a difficult period for the crypto space, which has lost billions of dollars in value due to rampant inflation and high-interest rates. Such a difficult macro environment has pushed investors away from cryptocurrencies, with Bitcoin and Ether losing 50% in the past 6 months.
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Binance Sees France As the Most Crypto-Friendly Country in Europe
Earlier this year, Binance won the approval to operate in France, making it the first European country to register a major crypto exchange. This marked a landmark moment for France, which has been described by Binance CEO, Changpeng Zhao, as a very progressive country in terms of crypto regulation.
This made France very appealing to invest in, added Zhao, who gave hints at a crypto industry event to launch a new accelerator program for “Web3” start-ups, with €100 million in capital commitments.
Zhao said France was an obvious choice to set up Binance’s European headquarters because other countries in the region were not as crypto-friendly. Still, the world’s largest crypto exchange is interested in expanding in other European countries including Sweden, Switzerland, Spain, Netherlands, and Portugal.
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About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
