French Authorities Probes Binance for Aggravated Money Laundering

A recent update on the French Newspaper Le Monde released on June 16 revealed that the authority would launch a new investigation on Binance for engaging in “aggravated money laundering. The report mentioned that the investigation on Binance will be conducted by the judicial finance investigation service, which is currently working under the supervision of the jurisdiction of Paris (JIRS).

Over the past, the JIRS team has been conducting investigations on crime cases that challenge French national stability.

French Authority Investigates Binance

The probing team claimed that Binance engaged in unlawful practices contradicting its core businesses. In an interview with the news site Coindesk, the Paris public prosecutor’s office, confirmed that Binance illegally provided digital assets services. Additionally, the prosecutors questioned the money laundering checks implemented by Binance.

The prosecutor confirmed that JIRS investigation on Binance will involve experts from Service d’Enquêtes Judiciaires des Finances (SEJF). Launched in February 2022, the SEJF has supported the French government in investigating financial crime cases.

Reportedly the SEJF official gathered substantial evidence from documents and other online sources concerning the Binance case last week. The SEJF team intends to research the matter at hand extensively.

According to Le Monde, the authority suspected that Binance failed to meet the know-your-customers (KYC) requirements. The report revealed that Binance’s promotional tactics were against Autorité des marchés financiers (AMF) regulations.

Binance Accused of Violating AMF Regulations

In writing, the AMF official confessed that Binance advertisements were illegal since the crypto exchange license was yet to receive final regulatory approval. The AMF record illustrated that Binance had submitted the necessary documentation last May to obtain a digital asset service provider license in French.

In a Twitter statement, the president of Binance French unit David Princay confirmed that the market regulators raided their offices last week. Citing the French law, Princay stated that the regulator’s latest move conforms with on-site inspection requirements. He mentioned that the last week’s investigation was a regulatory requirement Binance should comply with.

During the probe, Princay stated that Binance was required to collaborate with the French authority to meet the regulatory objective. He confessed that Binance would work closely with policymakers and regulators to uphold compliance.

Review of Binance Expansion to Europe

Reflecting on an earlier report, Binance chief executive Changpeng Zhao applauded the regulatory approach adopted by the French regulators to supervise the crypto industry. The Binance boss believes France will soon become a leading crypto centre in Europe.

On June 5, Zhao tweeted that Binance received the approval of ISO 27001 and ISO 27701 certification for data privacy and information security. The certification officially permits the crypto exchange to set foot in France, Bahrain and UAE.

Besides the commendable actions in expanding Binance’s market presence in Europe on June 16, the crypto exchange revealed plans to exit from the Netherlands market. The Binance decision to quit Netherlands operations arose after the crypto exchange failed to meet the virtual asset service provider license requirements. In a press release, the Binance team confirmed to explore various ways to comply with the Dutch regulations.

Days before the announcement, Binance had announced plans to exit Cyprus due to regulatory tussle. Beyond this, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Coinbase for non-compliance with the securities law. The SEC claimed that Binance offered unregistered securities and failed to comply with the brokerage and dealership requirements.

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