France opens investigation into Binance over suspected involvement in money laundering

Creative Mind June 16, 2023

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Binance’s French unit is currently under investigation by local authorities for “illegal” provision of digital asset services and “acts of aggravated money laundering,” according to the Paris public prosecutor’s office.

The investigation focuses on Binance’s alleged operation as a digital asset service provider prior to receiving regulatory approval in May 2022, and “aggravated money laundering” through “investment operations, concealment and conversion, the latter being carried out by perpetrators of offenses having generated profits,” as told to CoinDesk.

Binance is registered as a digital asset service provider with the French financial regulator, AMF. This follows Binance’s ongoing lawsuit from the US Securities and Exchange Commission (SEC) over failure to register as a trading platform and the sale of unregistered securities.

Binance’s French unit is suspected of canvassing French customers illegally until 2022, according to Le Monde. The prosecutor said that an investigation into Binance began in February 2022 and that the collected evidence will undergo “an in-depth study.”

A Binance spokesperson said the company continues to cooperate with regulators and law enforcement agencies while investing significant resources into upholding compliance standards.