France Cracks Down On Binance Over Allegations Of Fraud And Money Laundering
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Binance is caught in another trouble with the rules in France. The country’s officials have started investigating the crypto exchange, saying it cheated on taxes and laundered money.
According to reports, the investigation, conducted by France’s financial crime team, (JUNALCO) also claims Binance handled money linked to drug sales. The case covers the years from 2019 to 2024.
Binance Denies The Claims, Calling Them Old And Untrue
The officials say Binance didn’t inform them about shady deals and ran its business without getting the right green light in France and other places in Europe. Some users also complained that they lost money because Binance gave them tricky messages and let them trade when it wasn’t allowed. Binance replied, saying all these claims are old news and not true, and it promised to fight the case.
This is not the first time the crypto exchange has had problems with authorities in Paris. Two years ago, Binance France was investigated by public prosecutors for offering crypto services before it was approved.
Former Chief Executive Officer Changpeng Zhao defended Binance, saying the report was not fair. He also shared that local officers came to Binance France without warning before starting the investigation. Zhao added that surprise visits like this happen all the time, not just to crypto firms but also to banks.
In the U.S., officials alleged that Binance ignored over 100,000 shady deals linked to illegal acts. The exchange is also facing regulatory troubles outside the US and France. Australia’s financial authority recently took Binance to court, saying it didn’t give retail investors the safety they should have had.
The Financial Action Task Force Warns That Crypto Is A Risk For Shady Deals
Binance keeps saying it is fixing these problems. The company talks about its strong anti-money-laundering system and how it trains workers to stop bad activities. The exchange also says it now follows global rules to check who its customers are to help stop crime.
Even with these promises, French leaders still say Binance action have affected investors. The Financial Action Task Force has also pointed out that crypto can be used for shady deals, showing why this space needs strong rules.
This month, the U.S. Supreme Court let another case against Binance and Zhao continue. That lawsuit was from investors who said Binance wrongly sold unregistered tokens, which dropped in value.
