French investigators have initiated a judicial probe into Binance, the world’s largest cryptocurrency exchange, over allegations of money laundering, tax fraud, and other financial crimes.
The investigation, led by the Paris Public Prosecutor’s Office’s economic and financial crime section (JUNALCO), focuses on offenses between 2019 and 2024.
Authorities are scrutinizing Binance’s activities across France and other European Union countries, with the probe including suspicions of money laundering linked to drug trafficking.
Investigators launched the case after complaints from users who claimed they lost money due to misleading information provided by the platform. Additionally, concerns have emerged over Binance operating without the necessary regulatory approvals.
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Binance Faces Widespread Regulatory Scrutiny
Binance declared it will actively fight charges during its public denials regarding these claims, with a spokesperson stating that the legal matter has existed for a long time and that the company remains focused on enhancing exchange compliance capabilities.
Binance has built new cybersecurity protocols, including expanded anti-money laundering (AML) and know-your-customer (KYC) protocols, to meet government regulatory standards while providing further employee training.
Governments across the world are increasingly filing legal actions against the cryptocurrency exchange. In June 2023, the authorities in France started their first probes against Binance due to its unlawful marketing activities alongside severe money laundering problems.
Binance’s former CEO, Changpeng Zhao shrugged off the announcement as “FUD,” which stands for fear, uncertainty, and doubt within the crypto space. Regulators across different countries have intensified scrutiny of Binance’s operations.
This month, the U.S. Supreme Court allowed a separate case against Binance and its former CEO to proceed. The lawsuit involves allegations that Binance sold unregistered tokens, which later plummeted in value, causing significant investor losses.
In December, Australian financial regulators sued Binance’s local derivatives unit, alleging the company misclassified retail customers as wholesale clients, denying them essential consumer protections.
The Financial Action Task Force (FATF), a global body responsible for combating financial crimes, has warned about the increasing use of cryptocurrencies for illicit activities. Authorities have raised concerns that digital assets could become a haven for criminals and terrorist organizations seeking to launder funds.
Conclusion
Binance continues to face mounting legal pressure as regulators worldwide increase oversight of the crypto industry. The judicial probe in France adds to the exchange’s ongoing legal battles in multiple jurisdictions.
Investigators are expected to conduct further examinations to determine the full extent of the alleged financial misconduct.
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