Binance Faces French Probe Over Alleged Regulatory Breaches And Money Laundering

Crypto exchange Binance is facing scrutiny in France as the local unit is being investigated for allegedly providing digital asset services without the necessary legal permissions and for purported involvement in money laundering activities.

The probe is centered around the accusation that Binance was operating as a digital asset service provider without obtaining the required regulatory approvals until May 2022, Coindesk reported.

The investigation also encompasses claims of serious money laundering through investment transactions and concealing and converting proceeds obtained through illegal means.

Binance is officially registered with the French financial authority, AMF (Autorité des Marchés Financiers), as a PSAN or digital asset service provider.

In addition to the current investigation in France, Binance is also facing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).

The SEC alleges that Binance failed to register as a trading platform and engaged in the sale of unregistered securities.

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French publication, Le Monde, reported that Binance is suspected of having actively solicited French clients through its local branch, bypassing the legal regulations until 2022.

The Public Prosecutor's Office stated that Binance had been under investigation since early 2022 by the specialized interregional jurisdiction of Paris, which then referred the case to the SEJF, a government branch focusing on financial crimes.

The prosecutor stated, "The documentary and computer elements collected during the search will now have to be the subject of an in-depth study."

Changpeng Zhao, Binance CEO Changpeng Zhao, took to Twitter to acknowledge that there had been an unannounced visit from the authorities in recent weeks.

4. FUD.

In France, surprise (no advanced notice) on-site inspections of regulated businesses are the norm, for banks, and now for crypto too.

The surprise visit for Binance France happened a couple of weeks ago. It's not "news". Binance France cooperated fully.

Binance also… https://t.co/xdbLc5jXBW

— CZ 🔶 Binance (@cz_binance) June 16, 2023

However, Zhao added that other crypto firms had also faced similar surprise inspections, and reaffirmed France’s position as a key hub for the company in Europe.

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