French Authorities Investigate Money Laundering Against Binance
Summary: Binance has been accused of interfering with investment operations, concealing cash, and laundering unlawful money. Binance CEO CZ claims that France conducts unannounced on-site inspections of regulated businesses as a standard practice.
The biggest cryptocurrency exchange in the world, Binance, is facing new obstacles and heightened government scrutiny. After facing legal action in the United States and having its license denied in the Netherlands, the exchange is now being looked at by French authorities for “aggravated money laundering.”
The stress on Binance continues to increase in light of this recent event. In addition, it makes one wonder about the future of crypto. Recently, it was reported that authorities are looking into whether or not Binance broke the law by providing its digital asset services to the public.
In addition, allegations of severe money laundering have been made against the platform. Allegations include interfering with investing operations, hiding funds, and launder money from illegal activities.
As the French inquiry shows, there are mounting doubts about whether or not Binance complies with regulatory requirements. Also, it takes efforts to prevent money laundering seriously. This action might have major consequences for Binance and the cryptocurrency sector as a whole. As cryptocurrency exchanges confront greater difficulty operating under regulatory frameworks.
The largest crypto exchange in the world has claimed it cannot provide any more comment on the ongoing investigation by law enforcement. However, it highlighted that access to its customers’ private information would be granted upon request.
CZ Claims it Standard Practice
CEO of Binance Changpeng Zhao called the rumor “FUD” and claimed that in France, unannounced on-site inspections of regulated enterprises are standard practice. Then he made it quite clear that the same holds true for cryptocurrency exchanges.
He said that a few weeks ago, Binance France had a pleasant surprise in the form of a personal visit. Many of the largest cryptocurrency exchanges in Paris, as reported by CZ, have also been the subject of investigations over the course of the last week.