French authorities have launched an investigation into Binance, the world’s largest cryptocurrency exchange, alleging it likely “assisted in habitual money laundering . . . in particular drug trafficking and tax fraud.”
Prosecutors are examining whether Binance properly implemented know-your-customer (KYC) and anti-money laundering (AML) protocols. They claim the potential offenses were “committed in France but also . . . in all countries of the European Union.”
This probe adds to Binance’s growing regulatory challenges worldwide. The exchange has faced scrutiny in the US, UK, and Germany over compliance issues.
Despite these setbacks, Binance has consistently denied wrongdoing and emphasized its commitment to transparency and compliance. This stance was reiterated after its former CEO, Changpeng Zhao (CZ), was sentenced to four months in prison last year. “Our industry has entered a new phase. Compliance is super important,” CZ tweeted at the time.
I would like to thank everyone for your care and support, be it writing letters, showing support on X, or in any other form. They all mean a lot to me and keep me strong. I will do my time, conclude this phase and focus on the next chapter of my life (education).
— CZ 🔶 BNB (@cz_binance) May 1, 2024
I will remain a…
With the French probe too, the exchange called the matter referred in it as settled and "several years old".
A Binance representative told Cointelegraph that “Binance is deeply disappointed to learn that JUNALCO, a Paris division of the French Public Prosecutor’s Office, has taken the decision to refer this matter, which is several years old, to the French judiciary for further investigation.”
“While we do not usually comment on legal proceedings as a matter of policy, Binance fully denies the allegations and will vigorously fight any charges made against it,” the exchange added.
The outcome of the French investigation could significantly impact Binance’s operations in Europe, where it has, at least publicly, fought hard to position itself as a compliant leader in the crypto industry.