French Authorities Investigate Binance For Alleged Money Laundering
Binance, the world’s largest cryptocurrency exchange, is facing a new round of challenges as it comes under investigation by French authorities. This follows a recent lawsuit in the United States and the denial of a license in the Netherlands.
JUST IN: 🇫🇷 #Binance under investigation in France for alleged money laundering.
— Watcher.Guru (@WatcherGuru) June 16, 2023
Binance France uder Investigation
Reports indicate that Binance is being investigated for allegedly offering digital asset services to the public without proper authorization, a violation of French regulations. Additionally, the exchange has been accused of engaging in acts of aggravated money laundering, including competition with investment operations, fund concealment, and the conversion of illicit proceeds.
The investigation into Binance was initiated by the specialized interregional jurisdiction of Paris (JIRS) and subsequently referred to the Service d’Enquêtes Judiciaires des Finances (SEJF), a government entity dedicated to combating financial crimes. The investigation has been ongoing since February 2022, and the collected documentary and computer evidence will undergo thorough examination.
It is worth noting that Binance had obtained registration as a digital asset service provider (DASP) from the French financial regulator in May 2022. However, given the ongoing investigation into alleged money laundering activities, doubts have arisen within the community regarding Binance’s ability to secure a license under the proposed Markets in Crypto-Assets (MiCA) framework.
Concerns Amid Investigation
In response to the situation, David Prinçay, the President of Binance France, took to Twitter to address concerns. He stated that regulatory inspections are a standard part of compliance obligations for financial institutions in France and confirmed that Binance had undergone an on-site visit by authorities, fully cooperating with their requirements. Prinçay emphasized Binance’s commitment to maintaining high standards and continued collaboration with regulators and law enforcement agencies to meet all ongoing compliance requirements.
While asserting that Binance has been operating in full compliance with French laws, Prinçay refrained from commenting on the specifics of ongoing law enforcement or regulatory investigations. He assured users that their information is securely held and only provided to government officials with appropriate documentation justifying such requests.
