France investigates Binance for illegal activities & money laundering.

Binance, a prominent cryptocurrency exchange, has recently faced increased scrutiny from authorities. In addition to facing charges from the US SEC, it has come to light that the French branch of Binance is currently undergoing a “preliminary investigation,” as confirmed by the Paris public prosecutor’s office.

The investigation, carried out by the country’s finance judicial investigation service, alleges the provision of illegal services related to digital assets and “acts of aggravated money laundering.” This investigation by judicial authorities has been ongoing since February 2022, under the direction of the specialized interregional jurisdiction of Paris.

The crypto exchange is suspected to have breached KYC (Know Your Customer) rules, the report stated. KYC checks are financial services must carry out to ensure their platforms are not used for money laundering.

The filing by the U.S SEC stated that “until August 2021, Binance did not even require all of its clients to complete KYC documents.”

Moreover, the acts of aggravated money laundering involved competition with investment operations, concealment of funds, and conversion of illicit proceeds, the report said.

According to a Binance spokesperson, the firm puts in considerable effort into global compliance. “We abide by all laws in France, just as we do in every other market we operate,” the spokesperson said.

The response also disclosed that as of last week, French local authorities had an onsite visit to the firm, which Binance claimed is part of its regulatory obligations.

Binance recognizes Paris as one of its regional hubs and has been registered as a PSAN in France since 2022. Alongside Paris, Binance also counts Dubai as one of its regional hubs.

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