The French branch of Binance has been under preliminary investigation since February 2022 due to alleged illegal provision of crypto services and non-compliance with anti-money laundering obligations. This is reported Le Monde with reference to the prosecutor’s office of Paris.
According to the authorities, the allegations against the platform relate to its activities as an unregistered digital asset service provider. The prosecutor’s office also noted several “acts of money laundering with aggravating circumstances.”
The media claims that the case was initially supervised by the Special Interregional Jurisdiction of Paris, but in February 2022 it was transferred to the Financial Crimes Investigation Service. At the same time, in May, Binance received a license as a crypto service provider from the French Financial Market Supervisory Commission.
“Documentary and digital materials collected during the search should now be the subject of in-depth study,” the prosecutor added.
Binance French head David Princy said on-site regulatory reviews are “part of the regulatory obligations that all financial institutions must comply with” in the country. According to him, the company fully complies with local legislation and cooperates with the authorities.
En France, les inspections sur site des régulateurs et des inspecteurs font partie des obligations réglementaires auxquelles toutes les institutions financières doivent se conformer. Nous avons eu une visite sur site la semaine dernière par les autorités compétentes. Binance…
— David Princay (@davidprincay) June 16, 2023
“We will not comment on the specifics of law enforcement or regulatory investigations, except that information about our users is securely stored and provided to government officials only after receiving appropriate documentary justification,” he said.
Binance CEO Changpeng Zhao commented tweet message with the number “4”. On his list, she means “ignore FUD and fake news. In France, unannounced inspections of regulated businesses “are the norm for banks, and now for cryptocurrencies,” he said.
“An unexpected visit to Binance France happened a couple of weeks ago. This is not ‘news’,” Zhao wrote.
He added that the French division remains “our flagship center in Europe.”
June 5 SEC sued the exchange and its CEO, Changpeng Zhao. The regulator filed 13 charges, including those related to the sale of unregistered securities. The department demanded from the court an emergency freezing of the assets of the American division.
Reports later emerged that the Commission’s claims were similar to those brought by the agency against the failed FTX crypto exchange and its subsidiary Alameda Research.
Recall that on June 16, Binance announced its withdrawal from the jurisdiction of the Netherlands – the company was unable to obtain a license from a local regulator.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!