France Probes Binance Exchange for Suspected Money Laundering

Binance, which is known as the world’s largest cryptocurrency exchange, is currently facing a series of investigations and allegations in the United States. The US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance and its US affiliate, accusing them of various crimes such as aiding money laundering and committing tax offenses. Right after this Nigeria’s SEC declared Binance illegal, accusing it of engaging in wrongful operations. 

Adding to its troubles, Binance is now under investigation in France and has been accused of being involved in “aggravated” money laundering. These recent developments seem to indicate that the situation is becoming increasingly challenging for the prominent cryptocurrency platform.

Investigation Launched Against Binance’s French Unit for Alleged Money Laundering and Illegal Digital Asset Services

In the latest development concerning Binance, the leading cryptocurrency exchange, its French unit has come under investigation by local authorities. The Paris public prosecutor’s office has confirmed that Binance’s activities are being examined due to suspicions of providing “illegal” digital asset services and engaging in “acts of aggravated money laundering.” According to French prosecutors, the allegations against Binance revolve around two main aspects. Operating illegally and Aggravated money laundering. 

Binance is officially registered as a digital asset service provider (PSAN) with the French financial regulator. However, the ongoing investigation by local authorities raises serious concerns and underscores the legal scrutiny surrounding the exchange’s operations in France.

Investigation Progress and Binance’s Regulatory Actions

The Paris public prosecutor has confirmed that the ongoing investigation into Binance, conducted by the specialized interregional jurisdiction of Paris (JIRS), has been referred to the SEJF, an anti-financial crime division of the government. The collected documentary and computer evidence will now undergo a thorough examination.

Recently, Binance announced its decision to cease operations in the Netherlands due to the inability to obtain a license demonstrating compliance with the country’s anti-money laundering (AML) guidelines. The exchange has also applied to terminate its registration with Cyprus’ securities regulator, citing a strategic focus on fewer regulated entities within the European Union (EU).

Binance Response

A Binance spokesperson said, “In France, on-site visits by regulators and inspectors are part of regulatory obligations to which all financial institutions must adhere… Binance, as always, was fully collaborative and we met our obligations accordingly. We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards.” 

“Binance invests considerable time and resources into cooperating with law enforcement globally. We abide by all laws in France, just as we do in every other market we operate. We will not comment on the specifics of law enforcement or regulatory investigations except to say that information about our users is held securely and only provided to government officials upon receipt of documented appropriate justification.”