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Breaking Binance Under Investigation for “Aggravated Money Laundering” in France

2 mins
Updated by Geraint Price
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In Brief

  • Binance faces a preliminary investigation in France over "aggravated money laundering" and "illegal provision of crypto services."
  • The company is accused of breaching "Know Your Customer" (KYC) procedures and French laws regulating cryptocurrency platforms.
  • Amid these allegations, Binance reaffirms its commitment to law enforcement and global compliance, while also combating lawsuits in the US.
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Binance, the world’s leading cryptocurrency exchange, has been under legal scrutiny as French authorities recently investigated “aggravated money laundering” and “illegal provision of crypto services.”

This investigation, instigated by the Parisian judicial authorities, echoes a recurrent theme of alleged regulatory breaches that continue to haunt Binance’s operations worldwide.

Binance Accused of Money Laundering in France

The principal charges against Binance in France are about a dual prong of alleged illegalities. Firstly, the exercise of unauthorized digital asset services (PSAN). And secondly, sophisticated money laundering.

Perpetrators have purportedly used the cryptocurrencies on the trading platform as a conduit for illicit investments, concealments, and conversions, generating significant illicit profits.

This imbroglio for Binance amplifies the crescendo of regulatory pressures and accusations the crypto exchange has recently faced. The platform’s alleged negligence in upholding “Know Your Customer” (KYC) procedures is particularly noteworthy.

This is a suite of verification protocols that financial services must enforce to prevent money laundering.

France’s examination of Binance further extends to allegations that the company violated the nation’s laws regulating cryptocurrency platforms.

Since 2019, these laws have mandated that any entity wishing to engage in various activities, such as advertising to potential French clients, must obtain the status of a “digital asset service provider” from the Financial Markets Authority (AMF).

Suspicions arise that Binance has flouted a key requirement since it began operations in France in 2020. It procured advertising to promote its services before formally registering with the AMF in May 2022.

A spokesperson for Binance affirmed the firm’s commitment to adherence to all laws in each market where they operate. He stated that Binance invests heavily in ensuring global compliance and cooperation with law enforcement.

“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,” said a Binance spokesperson.

As Binance navigates this tumultuous legal landscape in France, the exchange also finds itself under fire from multiple lawsuits in the United States.

The US Securities and Exchange Commission (SEC) also claims that Binance failed to enforce rigorous KYC measures on all its customers. The platform is accused of misleading customers and misdirecting capital, compounding a daunting global regulatory challenge.

This is a developing story…

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Bary Rahma
Bary Rahma is a senior journalist at BeInCrypto, where she covers a broad spectrum of topics including crypto exchange-traded funds (ETFs), artificial intelligence (AI), tokenization of real-world assets (RWA), and the altcoin market. Prior to this, she was a content writer for Binance, producing in-depth research reports on cryptocurrency trends, market analysis, decentralized finance (DeFi), digital asset regulations, blockchain, initial coin offerings (ICOs), and tokenomics. Bary also...