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Binance Faces New French Probe: Money Laundering, Tax Fraud Allegations

Coin WorldTuesday, Jan 28, 2025 3:55 pm ET

1min read

Binance, the world's largest cryptocurrency exchange, is facing renewed legal challenges in France, with authorities investigating allegations of money laundering and tax fraud. This latest probe is part of a broader pattern of regulatory scrutiny that the exchange has faced in recent years, with investigations ongoing in at least ten countries.

Binance has consistently denied the allegations and has pledged to fight any charges made against it. The exchange has been under scrutiny from the French government since 2022, with concerns raised about its Know Your Customer (KYC) procedures and potential money laundering activities. The latest investigation is reportedly looking into a period between 2019 and 2024, with a focus on drug trafficking-related money laundering and tax fraud.

Binance's global regulatory struggles have been well-documented, with the exchange facing challenges in countries such as Australia, Belgium, Canada, India, Nigeria, and the United States. In the US, Binance agreed to pay a $4.3 billion settlement for violating Anti-Money Laundering (AML) laws and operating as an unregistered money transmitter. Binance CEO Richard Teng has acknowledged historical compliance issues, attributing them to the rapid growth of the exchange's user base and workforce.

In response to these regulatory pressures, Binance has made significant investments in its compliance infrastructure. As of November 2024, the company reported a 34% increase in its compliance team, reaching a total of 645 full-time members. This strategic expansion is part of Binance's commitment to adhering to regulatory standards globally, reflecting its ongoing transformation since settling its case with the US government in 2023.

The outcomes of the French investigation could have far-reaching implications for Binance's operations and compliance strategies. As the exchange navigates this complex regulatory environment, stakeholders and users should remain informed about its advancements in regulatory compliance and the implications of these legal challenges, which may shape the future of cryptocurrency trading on a global scale.

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