BREAKING: Binance Under Investigation In France For Serious Money Laundering

Key Points:

• French authorities are investigating Binance for an “illegal” supply of digital asset services and aggravated money laundering.
• Binance is accused of soliciting French clients via its local branch in violation of French law until 2022.
• The exchange recently announced its departure from the Netherlands after failing to get an AML license.

The Paris prosecutor’s office stated to it that Binance is being investigated by local authorities for “illegally” providing digital asset services and serious money laundering.

The information confirmed to Le Monde by the Paris public prosecutor’s office, an investigation relates to acts of illegal exercise of the function of digital asset service provider (PSAN) on the one hand and acts of aggravated money laundering by participating in investment operations, concealment, and conversion on the other, the latter being carried out by perpetrators of offenses that generated profits.

According to the Paris prosecutor’s office, an in-depth examination of papers and computer parts seized during the search is now required.

Binance, which is being sued by the Securities and Exchange Commission for failing to register as a trading platform and selling unregistered securities, is also suspected of violating French law governing crypto-asset platforms, which has made a wide range of activities conditional on obtaining the status of a digital asset service provider since 2019.

This registration with the Financial Markets Authority (AMF) is especially important if you want to market to prospective French consumers. Nevertheless, Binance, which has been delivering its services in France since 2020, is accused of having purchased ads to boost its presence in the nation prior to registering with the AMF in May 2022. Binance spokesperson explained to Le Monde:

“In France, control visits by regulators and inspectors are part of the legal obligations to which all financial institutions are subject.”

The exchange is accused of failing to meet its duties under “know your customer” (KYC) procedures, which cover all of the checks that financial firms must do to prevent their platforms from being used for money laundering, according to Le Monde.

Binance announced its departure from the Netherlands market earlier today, and local customers will no longer be able to trade on the site as of July 17.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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