Binance Was Sued By French Clients For Misleading Commercial Practice

Key Points:

• Binance is being accused of deceiving the public and advertising its services before it was permitted to do so by law by a group of French cryptocurrency investors who have launched a criminal complaint against the largest crypto exchange in the world.
• According to the lawsuit, unregistered providers of digital financial services are prohibited from advertising their services in France under a regulation that took effect in France in December 2020.
• Following a significant industry slump and a spike in consumer withdrawals, the exchange is working to restore confidence.

According to the Reuters report, Binance has been charged with a crime by a group of French cryptocurrency investors.

According to attorneys Etienne de Dreuille and Baptiste Bonhomme, a case was filed with allegations of “misleading commercial practice”.

They claim that Binance misled the public and advertised its services before it was permitted to do so by law in the nation.

In May of this year, the exchange finished the registration process with the French market regulator AMF.

According to the lawsuit, unregistered providers of digital financial services are prohibited from advertising their services in France under a regulation that took effect in France in December 2020.

Due to privacy laws, the attorneys refrained from disclosing the identities of the Binance users who filed the case.

According to the complaint, which Reuters was able to view, Binance ran marketing activities on social media sites like Instagram and Telegram while its legal registration as a digital financial business with French authorities was still waiting.

The group, which used the site and was a client, has complained to the Paris prosecutor’s office. However, neither Binance nor the prosecution office have responded.

A formal inquiry may not necessarily be opened by the French Prosecutor as a result of this complaint, either.

The CEO of Binance, Changpeng Zhao, has frequently complimented France for its “pro-crypto” legislation and has stated that Binance intended to establish a regional headquarters there for the European market.

Zhao was quoted by the news outlet Mediapart as claiming that “Binance has not been promoting its offers in France before it was allowed to,” which was the first to report on the French complaint.

Due to a recent sharp increase in client withdrawals from Binance, the crypto community is concerned about another devastating catastrophe.

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Harold

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