According to a report by French local media "Le Monde", the French Financial Judicial Investigation Service (SEJF) launched an investigation into Binance France on suspicion of "illegal exercise of digital asset service provider (DASP) authority" and "serious money laundering". The investigation mentioned that Binance France may have started advertising in France during 2020 to promote the Binance exchange business before it obtained the French Digital Asset Service Provider License (DASP) in May 2022.
Paris Inquiry Confirms Binance France is Under Investigation by French Authorities
Just after the news from Le Monde was released, the Paris Inquisition confirmed to CoinDesk that Binance France was under investigation by the authorities. The two accusations include Binance France illegally operating digital asset services and concealing and converting serious assets through investment operations. of money laundering. In addition, Binance was suspected of violating France's relevant laws and regulations on digital asset platforms in 2019. For example, if you operate local cryptocurrency-related businesses, you need to obtain a "digital asset service provider" license.
Three months before Binance France obtained a license from the French Financial Market Supervisory Authority (AMF) in May 2022, the Paris Professional Regional Court (JIRS) transferred the investigation of Binance France to the French Financial Judicial Investigation Service because the authorities It is believed that Binance France has not completed KYC certification and may be used for money laundering.
David Prinçay, General Manager of Binance France, confirmed on Twitter on the evening of the 16th that French inspections visited the company last week, and pointed out: “In France, on-site inspections by regulators and investigators are mandatory for all financial institutions. "Part of our regulatory obligations." "We have fully cooperated and fulfilled our obligations, and will continue to work with regulatory and law enforcement agencies to fulfill legal and compliance requirements with high standards."
David Prinçay, general manager of Binance France, said that he has cooperated with the investigation unit and is investigating. Photo Credit: David Prinçay
CZ tweeted that on-site inspections without prior notice are normal in the financial and cryptocurrency industries.
At nearly 9 o'clock in the evening on the 16th, Binance CEO Changpeng Zhao (CZ) responded on Twitter: "In France, surprise inspections by regulated entities (without prior notice) are normal, and this is true for banks and the cryptocurrency industry. Binance France was notified a few weeks ago. This is not news, and Binance France will fully cooperate. Binance is not the only regulated crypto business service provider in France. Other cryptocurrency companies such as Paris are also in a similar situation. Binance France remains an important base for Binance in Europe."
CZ responded to the investigation on Binance France on Twitter, which is normal in the financial and cryptocurrency industries. Photo Credit:CZ
This article French investigation says Binance France is suspected of "illegal provision of digital asset services and serious money laundering" first appeared on Blockchain.