Binance Faces French Probe: Money Laundering, Tax Fraud Allegations

French Authorities Launch Judicial Probe into Binance over Allegations of Money Laundering and Tax Fraud

French authorities have launched a judicial investigation into Binance, the world's largest cryptocurrency exchange, over allegations of money laundering and tax fraud. The probe, led by the Paris public prosecutor’s economic and financial crime division (JUNALCO), also includes accusations of money laundering tied to drug trafficking.

The investigation covers activities from 2019 to 2024 across France and the European Union. It was initiated after user complaints about financial losses and misleading information provided by Binance, which allegedly operated without the required regulatory approvals.

Binance has denied the allegations and vowed to fight any charges made against it. The exchange secured regulatory approval in France in May 2022, becoming a registered Digital Asset Service Provider (DASP) under the oversight of the Autorité des Marchés Financiers (AMF).

This investigation marks a significant regulatory challenge for Binance, which has faced mounting legal actions and criminal allegations globally. In the United States, the Securities and Exchange Commission (SEC) has pressed ahead with a civil lawsuit against Binance, questioning the exchange’s adherence to federal securities laws.

The ongoing investigation in France underscores the heightened regulatory scrutiny facing the cryptocurrency industry. As implications unfold, stakeholders must stay informed and apply caution in their dealings. The future of crypto trading may hinge on the outcomes of these legal proceedings and how the industry responds to increasing regulatory expectations.