Binance, the world’s top cryptocurrency exchange, is currently under scrutiny by French authorities, as per French media reports. The investigation is primarily centered on Binance’s anti-money laundering protocols.
This development comes on the heels of the company’s exit from the Netherlands due to its failure to secure a license from the Dutch central bank.
Binance confirmed in a statement that French authorities paid a visit to their offices last week, and they have pledged to cooperate fully.
“We received a visit from the relevant authorities last week. Binance was, as always, fully cooperative and fulfilled its duties appropriately. We continue to collaborate closely with regulators and law enforcement to meet all ongoing compliance requirements and maintain our high standards,” said a spokesperson from the company.
Cryptocurrencies, despite their volatility, have gained significant popularity as a trading asset class among both institutional and retail investors in recent years.
However, the extreme fluctuations in their value have raised concerns about the risks involved in investing in crypto. As a result, global regulators are intensifying their scrutiny of crypto exchanges in a bid to improve transparency.
Binance is also encountering hurdles in the United States as well as Europe.
In the US, the exchange faces lawsuits from two financial regulators – the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission. Both entities accuse Binance of operating unlawfully in the US and disregarding laws meant to safeguard investors.
Additionally, the SEC has charged the company and its founder, Changpeng Zhao, with mishandling client funds. Binance has refuted these allegations. Presently, the company’s US operations are negotiating with the SEC to prevent a complete asset freeze.
Binance has expressed concern that its operations could come to a standstill if a US judge approves the regulator’s petition for an asset freezing order.
On 30th May, Binance’s UK subsidiary, Binance Markets Limited, voluntarily withdrew from the Financial Conduct Authority’s registry. This move leaves Binance without any authorized entities in the UK, according to the FCA’s website.
