According to the latest report, Binance, one of the world’s largest cryptocurrency exchanges, is facing yet another investigation, this time in France.
The Paris public prosecutor’s office has confirmed that Binance is under scrutiny for allegedly providing illegal digital asset services and engaging in acts of aggravated money laundering.
According to the French prosecutors, Binance is suspected of operating as a digital asset service provider without proper authorization and participating in money laundering activities related to investment operations, concealment, and conversion of illicitly obtained profits.
The investigation has been carried out by the finance judicial investigation service in coordination with the specialized interregional jurisdiction of Paris since February 2022.
Binance’s Failure To Comply With Regulatory Procedures
It is believed that Binance, through its French branch, conducted business with local customers outside the legal framework until last year. The company is accused of failing to comply with regulatory obligations, particularly in terms of “know your customer” procedures.
These procedures require financial institutions to conduct thorough checks to prevent their platforms from being exploited for money laundering purposes.
These allegations of aggravated money laundering come on the heels of a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against the world’s largest crypto exchange.
The SEC claims that Binance operated illegally in the United States and failed to register as a trading platform and sell unregistered securities.
The regulator highlighted that Binance did not require all clients to complete the necessary know your customer (KYC) documents until August 2021, potentially leaving a significant number of customers unchecked.
Coinciding with the investigation news, Binance recently announced its departure from the Dutch market. The exchange failed to obtain a license demonstrating compliance with the Netherlands’ anti-money laundering guidelines, prompting its decision to cease operations in the country.
As the investigation unfolds, the exchange’s future remains uncertain. Market participants and regulatory authorities worldwide are closely watching the developments in this case.
The Paris public prosecutor’s office confirmed that documentary and digital evidence collected during the investigation will undergo thorough analysis. The exchange has yet to comment on the allegations and investigation.
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