Binance, the leading crypto exchange, faces an investigation over alleged illegal services and money laundering in France.
The largest cryptocurrency exchange in the world, Binance, is currently being investigated for allegedly providing illegal digital asset services and engaging in money laundering activities in France. This information has been confirmed by the Paris public prosecutor’s office.
The inquiry concerns Binance France’s failure to follow Know Your Customer (KYC) procedures. A prime concern is AML laws. In handling transactions with French customers, it’s suspected the exchange flouted legal regulations until 2022, obtained in May of the same year as the PSAN license for digital asset service providers.
The judicial investigation agency has been investigating finance since February 2022. As Le Monde reported, the specialized interregional jurisdiction of Paris oversees the investigation.
The Netherlands, Cyprus, and Nigeria are among the countries where Binance has recently encountered challenges. This occurs after the exchange departs from the Netherlands due to registration difficulties. Moreover, the exchange is experiencing regulatory actions worldwide due to the US Securities and Exchange Commission’s (SEC) legal action.
“Investigation relates on the one hand to acts of illegal exercise of the function of service provider on digital assets (PSAN), and on the other hand, acts of aggravated money laundering, by participating in investment operations, concealment, conversion, the latter being carried out by perpetrators of offenses having generated profits.”
Binance Faces Allegations Of Illegal Operations In France
Binance began operating in France in 2020. It is claimed that it illegally provided services until 2022 by not requesting KYC documents from clients. Violating French laws on crypto-asset platforms is what the exchange is suspected of. Crypto firms in France have had to obtain a ‘digital asset service provider’ license since 2019.
Binance’s spokesperson highlighted that it is legally mandated for all financial institutions in France to undergo regulatory visits and inspections. The company emphasized its continuous partnership with law enforcement agencies and regulators to ensure compliance with all obligations, reaffirming its dedication to maintaining high standards.
Regulatory difficulties in several countries have resulted in obstacles for Binance. Due to this, Binance is navigating a challenging environment. Essential in rebuilding trust in the services is reassuring clients of regulatory adherence.
Notwithstanding these challenges, Binance is firmly determined to cooperate with regulators and law enforcement agencies to adhere to all compliance obligations. To successfully navigate the changing regulatory environment, the exchange focuses on upholding high standards and collaborating closely with pertinent authorities. It ensures that its customers’ needs and desires take precedence.