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French authorities have initiated a money laundering investigation into Binance, the largest cryptocurrency exchange globally, on Tuesday due to alleged breaches of anti-money laundering and terrorist financing regulations, according to a report by Reuters.
The French public prosecutor indicated that Binance is “likely to have facilitated routine money laundering, particularly in connection with drug trafficking and tax evasion.”
French investigators open fraud probe against crypto platform Binance https://t.co/XaFaC93eOQ pic.twitter.com/ydhtTNMyEt
— Reuters Tech News (@ReutersTech) January 28, 2025
The purported activities were said to have taken place in France and throughout the European Union. Binance refutes the claims and expresses dissatisfaction regarding the renewed examination.
Binance States Money Laundering Case is Several Years Old
In a statement provided to Cryptonews, a spokesperson for Binance remarked: “Binance is profoundly disappointed to learn that JUNALCO, a Paris division of the French Public Prosecutor’s Office, has opted to refer this matter, which is several years old, to the French judiciary for further investigation.”
They continued, “While we do not typically comment on legal matters as a matter of policy, Binance categorically denies the allegations and will vigorously contest any charges brought against it.”
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“Binance’s progress in AML and compliance has already been recognized by major authorities including FinCEN, the DOJ, and OFAC, among others noting that Binance has ‘implemented enterprise-wide AML/CFT,’ ‘adopted Financial Action Task Force standards for AML and KYC,’ and ‘enhanced employee AML/CFT training,’” stated a Binance spokesperson.
Under Scrutiny for Marketing Campaigns in France
The investigation builds upon a previous inquiry into whether Binance promoted its services to French customers without appropriate regulatory approval.
Prosecutors have also accused the exchange of running marketing campaigns in France prior to its registration with local regulators, which constitutes a breach of French law.
This investigation arises amid increasing regulatory pressure on Binance worldwide.
In 2023, the exchange was penalized with a record $4.3 billion by U.S. authorities for failing to implement adequate anti-money laundering protocols and for breaching international sanctions.
That same year, co-founder Changpeng Zhao (CZ) resigned as CEO, with his successor committing to enhance compliance and regulatory adherence.
The post French Investigators Launch Money Laundering Investigation Into Binance appeared first on Cryptonews.
