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Journalist
Tanzeel Akhtar
Journalist
Tanzeel Akhtar
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French authorities have opened a money laundering investigation into Binance, the world’s largest cryptocurrency exchange, on Tuesday over alleged violations of anti-money laundering and terrorist financing laws, according to a Reuters report.
The French public prosecutor revealed that Binance is “likely to have assisted in habitual money laundering, particularly in connection with drug trafficking and tax fraud.”
The alleged activities were said to have occurred in France and across the European Union. Binance denies the allegations and expresses disappointment over the renewed scrutiny.
Binance Says Money Laundering Case is Several Years Old
In a statement shared with Cryptonews, a Binance spokesperson said: “Binance is deeply disappointed to learn that JUNALCO, a Paris division of the French Public Prosecutor’s Office, has taken the decision to refer this matter, which is several years old, to the French judiciary for further investigation.”
They added, “While we do not usually comment on legal proceedings as a matter of policy, Binance fully denies the allegations and will vigorously fight any charges made against it.”
“Binance’s advances in AML and compliance have already been recognized by leading authorities including FinCEN, the DOJ and OFAC, among other things noting that Binance has ‘implemented enterprise-wide AML/CFT,’ ‘implemented Financial Action Task Force standards for AML and KYC,’ and ‘improved employee AML/CFT training,’” said a Binance spokesperson.
The investigation expands upon an old inquiry into whether Binance marketed its services to French consumers without proper regulatory approval.
Prosecutors also accused the exchange of conducting promotional campaigns in France before it was registered with local regulators, a violation of French law.
The investigation comes amid growing regulatory pressure on Binance globally.
Back in 2023, the exchange was fined a record $4.3 billion by U.S. authorities for failing to implement adequate anti-money laundering measures and for violating international sanctions.
That same year, co-founder Changpeng Zhao (CZ) stepped down as CEO, with his successor pledging to improve compliance and regulatory adherence.
