The post Just In: French Investigation Opens Probe into Binance for Money Laundering, Tax Fraud and More appeared first on Coinpedia Fintech News
In a latest development, French investigators have opened a judicial probe into money laundering, tax fraud, drug trafficking and other charges against crypto platform Binance as reported by Reuters.
The economic and financial crime section of the Paris public prosecutor’s office (JUNALCO) said in a statement that the probe includes money laundering in connection with drug trafficking. Notably, the investigation is examining the period from 2019 to 2024, involving offences committed in France but also in all European Union countries.
Binance Investigated for Fraud and Unapproved Operations in France, EU
The investigation, covering the period from 2019 to 2024, focuses on offences in France and across the EU. It was initiated following complaints from users who claimed to have lost money due to misleading information provided. The complaints also included allegations that the platform was operating without the necessary approvals.
The investigation into Binance by French authorities dates back to 2023, when they first accused the exchange of offering illegal crypto services and lacking an adequate anti-money laundering framework. Facing mounting regulatory pressure, Binance was forced to exit the French market last year.
Increasing Regulatory Challenges
Binance is facing multiple legal challenges worldwide. This month, the U.S. Supreme Court allowed a lawsuit to proceed against Binance and founder Changpeng Zhao, involving investors who accused the platform of illegally selling unregistered tokens. In December, Australia’s corporate watchdog filed a lawsuit against Binance’s local derivatives business, alleging that retail customers were misclassified as wholesale clients, denying them consumer protections.
Growing Global Scrutiny of Crypto Platforms
This move by the French regulators highlights the growing scrutiny that cryptocurrency platforms are facing from regulatory bodies worldwide. This is part of a larger trend where global regulators are ramping up their efforts to enforce stricter compliance with financial laws and crack down on illicit activities that can be facilitated through crypto platforms.
The exchange has been a dominant player in the crypto space, with millions of users and a vast array of services, from trading to staking and even offering derivatives. Despite facing challenges, Binance has managed to keep operating by adjusting its services to meet local laws. However, this new investigation could lead to even more pressure from regulators.
