Binance Faces 'Aggravated' Money Laundering Probe in France
According to the Paris public prosecutor's statement to CoinDesk, Binance is under suspicion for allegedly offering digital asset services to local customers in violation of the law and for inadequately conducting money laundering checks.
Because Bitcoin
June 16, 2023
CoinDesk reported that the Paris public prosecutor's office has informed CoinDesk that Binance's French unit is currently under investigation by local authorities for allegedly providing digital asset services in a manner deemed "illegal." The investigation also involves allegations of "acts of aggravated money laundering." The authorities suspect that Binance operated as a digital asset service provider without obtaining regulatory approval until May 2022. They further accuse Binance of engaging in aggravated money laundering through involvement in investment activities, concealment, and conversion, which resulted in illicit profits. Binance is registered as a digital asset service provider, known as a PSAN, with the French financial regulator, the AMF (Autorité des Marchés Financiers).
In addition to the ongoing investigation in France, Binance is already facing a lawsuit filed by the U.S. Securities and Exchange Commission for failure to register as a trading platform and the sale of unregistered securities. According to a report by Le Monde, the French unit of Binance is suspected of attracting French customers through its local operations, operating outside the legal framework until 2022.
The Paris public prosecutor's office confirmed to CoinDesk that an investigation regarding Binance was initiated by the specialized interregional jurisdiction of Paris, leading to a referral to the SEJF (Service d'Enquêtes Judiciaires des Finances), a government anti-financial crime unit, in February 2022. The prosecutor stated that the collected documentary and digital evidence would undergo a thorough examination.
A spokesperson for Binance stated in an emailed response that they are actively cooperating with regulators and law enforcement agencies to meet compliance requirements and maintain high standards. They emphasized that Binance devotes significant time and resources to collaborating with global law enforcement agencies. The spokesperson also reiterated that Binance adheres to all laws in France, as well as in all other markets where they operate. Regarding ongoing law enforcement and regulatory investigations, they declined to provide specific details but assured that user information is securely held and only
Binance is not only having trouble with France
Binance is leaving the Netherlands due to a failure to obtain an anti-money laundering license. They are also ending their registration with Cyprus' securities regulator to focus on fewer regulated entities in the EU. Binance's CEO, Changpeng "CZ" Zhao, previously hailed Paris as a major crypto hub and the company had plans to invest in the French crypto ecosystem.
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