Authorities in France, a major European centre for Binance, have opened an inquiry.
French authorities are investigating allegations that Binance illegally provided cryptocurrency services and engaged in “aggravated money laundering.”
Le Monde broke the story this morning. According to the source, the Paris-based authorities in charge of the financial judicial investigation agency have conducted a “preliminary investigation” on Binance since February 2022. Le Monde said that the Paris public prosecutor’s office verified the news.
Binance has been a PSAN in France since 2022 and is also accused of violating KYC regulations. It has a large proportion of its tens of thousands of employees in the Paris area, and the city is, along with Dubai, one of its regional centres.
Binance said last week that local officials had visited the company’s headquarters. It stated this action was necessary due to standard regulatory requirements.
Binance spends a lot of effort and money helping law enforcement worldwide. In France, like in every country where we do business, we strictly adhere to local regulations. A Binance representative stated, “We would not comment on the details of law enforcement, or regulatory investigations other than to stress that information on our users is stored securely and only disclosed to government authorities upon receipt of proven sufficient justification.
In addition to this news, other lawsuits have been filed against the exchange in the United States. Earlier in June, the Securities and Exchange Commission filed a lawsuit against Binance, accusing the company of misleading investors and consumers. The derivatives watchdog, Commodity Futures Trading Commission, has already filed suit against it.
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