Binance Faces Investigation in France for KYC and AML Compliance Failures

Binance Faces Money Laundering and Illegal Provision Investigation in France

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Binance’s French subsidiary is currently under preliminary investigation for illegal provision of digital asset services and money laundering, according to the Paris public prosecutor’s office. The investigation covers the period until 2022, despite Binance obtaining its digital asset service provider license (PSAN) in May 2022.

Binance Under Investigation in France

Binance France is under suspicion of non-compliance with Know Your Customer (KYC) procedures and anti-money laundering (AML) laws. The crypto exchange is alleged to have engaged with French customers in ways that were outside the legal framework until 2022.

Also Read: Binance Fails to Secure Registration, Announces Exit from Netherlands

The investigation into Binance France focuses on alleged illegal provision of digital asset services (PSAN) and participation in aggravated money laundering. The exchange is suspected of engaging in investment operations, concealment, and conversion of proceeds from offenses that have generated profits.

The investigation into Binance France is being carried out by the judicial investigation service of finance under the direction of the specialized interregional jurisdiction of Paris since February 2022, according to the Paris public prosecutor’s office.

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Following its failure to obtain registration in the Netherlands, Binance recently announced its exit from the country. This move comes in the wake of setbacks in Cyprus and Nigeria, as well as the ongoing lawsuit by the US Securities and Exchange Commission (SEC) against Binance. The regulatory actions taken against Binance globally have further intensified scrutiny on the cryptocurrency exchange.

Binance, operating in France since 2020, is facing allegations of illegally providing services in the country until 2022 by not ensuring all clients completed the required Know Your Customer (KYC) procedures. Additionally, the exchange is suspected of violating French laws regarding crypto-asset platforms. Since 2019, cryptocurrency firms in France are mandated to obtain a “digital asset service provider” license from the Financial Markets Authority.

Binance’s Response to Investigation

According to Binance France president David Princay, the recent on-site inspection by regulatory authorities in France was part of the regular regulatory obligations. Binance has demonstrated full cooperation and compliance with these obligations during the visit.

Binance reiterated its dedication to maintaining high standards and emphasized its ongoing collaboration with regulators and law enforcement agencies to fulfill all compliance requirements.

Binance Responds to Investigation with Collaboration and Compliance.

Amid the global regulatory uncertainty and legal challenges, Binance has issued a response to the alleged investigation launched by the Paris prosecutor’s office. The world’s largest crypto exchange confirmed that it is facing an inquiry related to illicit aggravated money laundering and canvassing of clients. Binance emphasized its commitment to collaboration and compliance, stating that it recently underwent an on-site visit by French authorities. The exchange reportedly cooperated fully with the inspectors and adhered to all obligations during the visit.

Also Read: Binance Plans to Deregister as Crypto Service Provider in Cyprus

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

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