French authorities are investigating Binance’s French unit for “illegally” providing digital asset services and “acts of aggravated money laundering,” CoinDesk reported.
According to the report, Binance is being investigating the illegal operation of Binance as a digital asset service provider before it received regulatory approval in May 2022. Furthermore, the Paris public prosecutor’s office said that the crypto exchange is also being investigated for “aggravated money laundering by taking part in investment operations, concealment and conversion, the latter being carried out by perpetrators of offenses having generated profits.”
Binance registered as a digital asset service provider, with the French financial regulator (PSAN) with the AMF (Autorité des Marchés Financiers) in May last year.
Тhe prosecutor said:
The documentary and computer elements collected during the search will now have to be the subject of an in-depth study.
Binance is already facing legal troubles with US Securities and Exchange Commission (SEC). Last week the regulator announced filling 13 charges against Binance and its founder Changpeng “CZ” Zhao with various securities law violations, among which operating without registration and offering unregistered securities.
In February 2022, following an investigation conducted by the specialized interregional jurisdiction of Paris, the public prosecutor confirmed that a referral was made to the SEJF, a government anti-financial crime division, regarding Binance.
Binance spokesperson told Coindesk:
We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards. Binance invests considerable time and resources into cooperating with law enforcement globally. We abide by all laws in France, just as we do in every other market we operate. We will not comment on the specifics of law enforcement or regulatory investigations except to say that information about our users is held securely and only provided to government officials upon receipt of documented appropriate justification.
Last week the exchange asked to withdraw its registration as a crypto service provider in Cyprus as it was focusing “on fewer regulated entities in the EU.”
