CDS Crypto News French Authorities Investigate Binance Over Alleged Illegal Crypto Services and Money Laundering
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French Authorities Investigate Binance Over Alleged Illegal Crypto Services and Money Laundering

Binance Faces Investigation in France Over Alleged Crypto Services and Money Laundering

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French Authorities Investigate Binance Over Alleged Illegal Crypto Services and Money Laundering

French Authorities Investigate Binance Over Alleged Illegal Crypto Services and Money Laundering

Binance Faces Investigation in France Over Alleged Crypto Services and Money Laundering

Binance, the world’s largest cryptocurrency exchange, is currently under investigation by local authorities in France, one of its regional hubs. This comes as the exchange is also facing significant lawsuits in the United States.

French Authorities Investigate Binance Over Alleged Illegal Crypto Services and Money Laundering

The investigation into Binance’s activities in France was reported by Le Monde. According to the report, the financial judicial investigation service, under the direction of Paris authorities, has been conducting a preliminary investigation into Binance since February 2022. The public prosecutor’s office in Paris has confirmed the investigation.

The focus of the investigation revolves around the alleged illegal provision of cryptocurrency services and “aggravated money laundering.” The report suggests that Binance is suspected of engaging in the illegal function of a service provider on digital assets (PSAN) and carrying out money laundering activities, including competition with investment operations, concealment, and conversion for generating profits.

Binance, which has been registered as a PSAN in France since 2022, is also under suspicion of violating KYC (Know Your Customer) rules. Paris, along with Dubai, serves as one of Binance’s regional hubs, with a significant number of its staff based in the area.

Binance has confirmed that it recently underwent an on-site visit by local authorities, stating that it is part of standard regulatory obligations. The exchange emphasizes its commitment to cooperating with law enforcement globally and abiding by all laws in France and other markets. Binance maintains that user information is securely held and only disclosed to government officials with appropriate justification.

French Authorities Investigate Binance Over Alleged Illegal Crypto Services and Money Laundering

In addition to the investigation in France, Binance is currently facing multiple lawsuits in the United States. The Securities and Exchange Commission (SEC) filed a lawsuit against the exchange earlier in June, accusing it of deceiving customers and misdirecting capital. Binance has also been sued by the Commodity Futures Trading Commission (CFTC), the derivatives regulator.

French Authorities Investigate Binance Over Alleged Illegal Crypto Services and Money Laundering
Sources:The Block

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