Binance, one of the world’s largest cryptocurrency exchanges, is currently under investigation in France for alleged “aggravated” money laundering and the illegal provision of digital asset services, according to the Paris public prosecutor’s office.
The allegations against Binance include engaging in illegal activities as a digital asset service provider and participating in acts of aggravated money laundering through competition with illicit investment operations, concealment, and conversion of profits generated by offenders. Binance is registered as a digital asset service provider with the French financial regulator, but prosecutors claim that the exchange had operated outside the legal framework until 2022, potentially targeting French customers through its local arm.
The investigation into Binance was initiated by the specialized interregional jurisdiction of Paris (JIRS) and was subsequently referred to the SEJF, a government anti-financial crime unit, in February 2022. The Paris public prosecutor confirmed that the collected documentary and computer evidence will undergo a thorough examination.
In addition to the investigation in France, Binance is also facing legal challenges from the U.S. Securities and Exchange Commission (SEC) regarding allegations of failing to register as a trading platform and the sale of unregistered securities.
Furthermore, Binance recently announced its decision to exit the Netherlands after failing to secure a license that demonstrates compliance with the country’s anti-money laundering guidelines.
These developments highlight the increasing regulatory scrutiny faced by Binance and the broader cryptocurrency industry, emphasizing the importance of adhering to legal frameworks and robust anti-money laundering measures to maintain trust and integrity within the financial ecosystem.