French authorities are investigating cryptocurrency exchange Binance for suspected financial misbehavior, such as money laundering and tax fraud. The Paris Public Prosecutor’s Office has extended its investigation into Binance’s activities from 2019 to 2024, following allegations that the platform may have been involved in illegal financial transactions.
According to reports, the inquiry focuses on potential money laundering linked to criminal enterprises, as well as charges that Binance misrepresented some financial facts to its users, resulting in investment losses. The economic and financial crime section, specializing in financial irregularity cases, is overseeing the investigation.
This recent discovery comes after an earlier probe of Binance’s business, which started in 2023. Authorities are investigating if the exchange conducted trading services without the required regulatory authorization before getting official registration in France in 2022.
Despite the current investigation, Binance insists that the company has always followed legal guidelines. The corporation has disputed all allegations and maintains that it has taken considerable steps to improve its compliance framework. Since the resignation of its former CEO, the corporation has increased regulatory measures, tightened monitoring, and reinforced compliance rules.
The increased regulatory scrutiny comes as European banking regulators tighten controls on bitcoin platforms. While Binance has previously positioned itself as a key player in the European market, these legal issues present considerable barriers to its activities in the region.
As investigations continue, the outcome could have far-reaching consequences for Binance and the broader cryptocurrency industry, particularly in how digital asset platforms manage changing regulatory frameworks.
