Binance, the crypto exchange with the highest trade volume globally, is currently facing an investigation for suspected money laundering activities, as reported by the French publication Le Monde. The finance judicial investigation service of France is currently scrutinizing the actions of Binance’s subsidiary in the country.
French Investigation Targets Binance: Allegations of Money Laundering and Regulatory Violations
Amid mounting challenges faced by the crypto exchange Binance, recent developments reveal that French authorities have turned their attention to the exchange’s French subsidiary. Following the legal action taken by the U.S. Securities and Exchange Commission (SEC) against Binance, reports indicate that law enforcement officials in France have initiated an investigation into the matter. The French publication Le Monde has verified this information with the Paris public prosecutor’s office.
The complaint against Binance contains accusations of “aggravated money laundering” and charges related to the “illegal provision of services for digital assets (PSAN).” It is alleged that Binance neglected to establish a proper know-your-customer (KYC) compliance process within the country. However, a spokesperson from Binance, in correspondence with Reuters, disclosed that the exchange engaged in a meeting with regulators just last week.
“In France, on-site visits by regulators and inspectors are part of regulatory obligations to which all financial institutions must adhere. We had an on-site visit last week by the relevant authorities,” the Binance representative said. “We will not comment on the specifics of law enforcement or regulatory investigations except to say that information about our users is held securely and only provided to government officials upon receipt of documented appropriate justification.”