Binance receives regulatory approval in France, clearing the route for its expansion throughout Europe.

Binance, the world's largest crypto exchange by volume and the trading place of a wide variety of cryptos and NFT utility coins like AXS, MANA and Quint, announced on Thursday that it has received regulatory authority to operate digital asset services in France, making it the first European country to do so.

The country's market and banking regulators gave the exchange the go-ahead, months after the exchange had encountered many regulatory hurdles on the continent.

In a statement, Binance founder and CEO Changpeng Zhao, widely known as CZ, said, "Effective regulation is necessary for the mainstream acceptance of cryptocurrency."

Binance must focus on "anti-money laundering compliance," according to France's financial industry regulator, if it wants regulatory clearance to open a regional headquarters in Paris. In August, the UK issued a notice stating that the company lacked written permission to operate there. A similar warning was issued by Germany.

Binance has been working hard to demonstrate to European regulators its commitment to practicing compliance and promoting the blockchain ecosystem in the region. Binance announced in November that it would invest 100 million euros to "support the development of the French and European blockchain and cryptocurrency ecosystems" as well as establish a research and development center in France.

Binance, which was created in China, has mainly abandoned the country as a result of Beijing's broad crypto ban. Many Chinese-founded cryptocurrency companies have relocated their headquarters to Singapore, which is swiftly becoming a regional powerhouse for blockchain entrepreneurs. Binance is understood to be looking for a new home, having announced in December that it would withdraw its licensing application and cease operations in Singapore.