Binance Faces Accusations of False Reporting In Ireland and Malta

Key Points:

• European Union regulators suspect Binance of illicit activities.
• Binance may be faking accounts and operations in several EU jurisdictions.
• Binance’s headquarters in Paris was recently raided by police in a European-wide investigation over aggravated money laundering.

European Union regulators have expressed concerns that Binance may be engaging in illicit activities such as money laundering and tax evasion.

These concerns have been raised due to its operations within Ireland and Malta being particularly difficult to track, despite claiming to employ dozens of employees. Revenue streams are unexplained or explained by “consultancy services” according to official records, and the companies don’t have an active and operational space other than their registered address — which are shared with other companies. In some cases, officials believe BNB is inflating registered employee headcounts by conflating the figure with contractual services to freelancers, whose job is mainly of a promotional nature.

Binance has been accused of commingling funds from revenue streams of different countries to avoid raising the eyebrows of regulators and tax authorities. European investigators have stated that BNB may be faking its accounts and operations in several EU jurisdictions. There are concerns that Binance is obfuscating illicit activity, which is why financial regulators in several EU jurisdictions received requests for information on BNB by the Securities and Exchange Commission (SEC) even before the agency charged the crypto exchange earlier this month.

Despite BNB’s claims to be operating in various countries in Europe, including in France, Ireland, Malta, Italy, Spain, Cyprus, and Lithuania, several European countries are conducting their own investigations into BNB on suspicions of local wrongdoing. In 2018, Binance announced that it was to set up its European headquarters in Malta and set up two companies. Then it changed track and set up three other companies in Ireland, announcing its European headquarters would be there. Eventually, it settled on Paris, France for its EU HQ and received a license to act as a digital asset provider in the country.

Binance’s headquarters in Paris was recently raided by police in a European-wide investigation over aggravated money laundering. In addition, Belgium’s financial regulator ordered Binance to stop its services in the country. As a result, Binance is expected to face more legal challenges with other EU countries in the coming months.

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