Breaking: Binance Under Investigation In France For Failing KYC And AML Compliance
The world’s largest crypto exchange Binance’s subsidiary in France is subjected to preliminary investigations for illegal provision of digital asset services and money laundering until 2022, confirmed to CoinGape Media by the Paris public prosecutor’s office. Binance received its PSAN or digital asset service provider license in May 2022.
Binance Under Investigation in France
Binance France is suspected of having failed to comply with Know Your Customer (KYC) procedures and anti-money laundering laws (AML). It is suspected that the crypto exchange has approached French customers outside the legal framework until 2022.
“Investigation relates on the one hand to acts of illegal exercise of the function of service provider on digital assets (PSAN), and on the other hand, acts of aggravated money laundering, by participating in investment operations, concealment, conversion, the latter being carried out by perpetrators of offenses having generated profits.”
According to the Paris public prosecutor’s office, the investigation is conducted by the judicial investigation service of finance under the direction of the specialized interregional jurisdiction of Paris since February 2022, reported Le Monde.
The news comes after Binance announced that it is quitting the Netherlands after failing to secure registration. Binance also faced setbacks in Cyprus and Nigeria. The US SEC lawsuit against Binance led many regulators around the world to take action against Binance.
Binance, which has been offering its services in France since 2020, is alleged to have also offered its services illegally in the country until 2022 as it didn’t require all of its clients to complete KYC documents. Moreover, the exchange is also suspected to have breached French law regarding crypto-asset platforms. Since 2019, crypto firms in France are required to obtain a “digital asset service provider” license from the Financial Markets Authority.
Also Read: US SEC Lawsuit Against Terraform And Do Kwon Could Be Dismissed
Binance Response to Investigation
“In France, on-site inspections by regulators and inspectors are part of the regulatory obligations that all financial institutions must comply with. We had a site visit last week by the competent authorities. Binance, as always, has been fully collaborative and fully met obligations,” explains Binance France president David Princay.
Binance said it continues to work closely with regulators and law enforcement agencies on all compliance requirements and maintains high standards.
Also Read: Haru Invest, Delio Face Class Action Lawsuits As Billions In Crypto Frozen
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