The legal troubles for world’s leading crypto exchange Binance continue to mount as new reports suggest the exchange has been reportedly under investigation in France since February 2022.
According to a report published in French daily Le Monde, the French arm of the crypto exchange has been the subject of a preliminary investigation – conducted by the judicial investigation service of finance under the direction of the specialized interregional jurisdiction of Paris – since February 2022.
The Paris public prosecutor’s office reportedly cited “acts of illegal exercise of the function of service provider on digital assets (PSAN), and acts of aggravated money laundering, by participating in investment operations, concealment, conversion, the latter being carried out by perpetrators of offenses having generated profits,” as the basis of the investigation.
Binance reportedly failed to follow or comply with the “know your customer” procedures that keeps a check on users and their money laundering activities.
Related: The state of crypto in Southern Europe: Malta leads the way
The crypto exchange reportedly failed to obtain an operating license and offered their services to French customers illegally. Since 2019, crypto exchanges are required to obtain the approval of the Financial Markets Authority (AMF) to operate. However, Binance, which has been operating in France since 2020, reportedly only got the AMF approval in May.
The reports of the investigation in France emerge within weeks of a securities lawsuit against the crypto exchange in the United States. The U.S. Securities and Exchange Commission has filed a total of 13 charges against the crypto exchange’s U.S. subsidiary and CEO Changpeng Zhao.
This is a developing story, and further information will be added as it becomes available.
