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

Binance, the world's largest cryptocurrency exchange, is facing a new investigation in France over allegations of money laundering and tax fraud. The probe, launched by French authorities, is reportedly linked to drug trafficking and covers a period between 2019 and 2024, extending across all European Union countries.

This is not the first time Binance has been in the crosshairs of the French government. The country has been examining the company's activities since 2022, citing inadequate Know Your Customer (KYC) procedures as a potential avenue for money laundering activities. A Binance spokesperson has confirmed that the latest legal challenge is a continuation of a probe dating back years.

Binance has faced authorities in at least 10 countries between 2021 and 2025, with allegations ranging from violations of Anti-Money Laundering (AML) laws to unregistered operations. In the US, Binance agreed to pay the government $4.3 billion for violating local AML laws and operating as an unregistered money transmitter. Binance CEO Richard Teng acknowledged "gaps in compliance" as the team scaled from six members to thousands, with a user base of over 166 million as of December 2023.

In response to regulatory pressures, Binance has increased its compliance team to 645 full-timers, a 34% rise in headcount. This move is part of its "intensified commitment to regulatory adherence" and "ongoing transformation" since its settlement with the US government in 2023. Binance's spokesperson noted that its advances in Anti-Money Laundering and compliance have been recognized by leading authorities, including the Financial Crimes Enforcement Network (FinCEN), the US Department of Justice, and the Office of Foreign Assets Control (OFAC).

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 Binance's advancements in regulatory compliance and the implications of these legal challenges, which may shape the future of cryptocurrency trading on a global scale.