- Binance is suspected of offering digital asset services to local clients without authorization and carrying out inadequate money laundering inspections.
- This investigation is being carried out by the judicial investigation service of finance under the supervision of the specialized interregional jurisdiction of Paris.
The legal issues for Binance, the largest cryptocurrency exchange in the world, keep getting worse, as recent sources claim that the exchange has been the subject of an inquiry in France since February 2022.
The French branch of the cryptocurrency exchange has reportedly been the focus of a preliminary investigation since February 2022, according to a report in the French newspaper Le Monde. This investigation is being carried out by the judicial investigation service of finance under the supervision of the specialized interregional jurisdiction of Paris.
According to reports, the Paris Prosecutor’s Office used acts of aggravated money laundering—participating in investment operations, concealment, and conversion—as well as acts of illegally exercising the role of a service provider on digital assets (PSAN) as the basis for the investigation. The latter was reportedly carried out by those who committed crimes that resulted in profits. According to reports, Binance did not adhere to or comply with the “know your customer” policies that monitor customers and their potential for engaging in money laundering.
According to reports, the cryptocurrency exchange operated without a license and provided its services to French clients in violation of the law. Cryptocurrency exchanges have had to obtain permission from the Financial Markets Authority (AMF) in order to operate since 2019. There are reports that Binance, which has been active in France since 2020, was approved by the AMF just this past May, according to their website.
In just a few weeks after a securities lawsuit was filed against a cryptocurrency exchange in the United States, reports emerged of an investigation underway in France. There have been 13 charges filed against the CEO of the cryptocurrency exchange, Changpeng Zhao, and its U.S. subsidiary by the U.S. Securities and Exchange Commission (SEC) for a total of 13 offenses relating to the cryptocurrency exchange.
Earlier this week, the SEC announced that Binance had been operating illegally in Nigeria, according to an official declaration that was made. Binance Nigeria Limited, according to the SEC, actively encouraged Nigerian investors to trade cryptocurrency assets on its unregistered platforms despite not being registered with or subject to its regulation.