The setbacks of the crypto firm Binance never end. Recently, the Securities and Exchange Commission (SEC) initiated legal action against the platform. In the process, Nigeria suspended the activities of the exchange on its territory and now it is the Paris prosecutor’s office that is on its heels.
Binance France suspected of failing to fulfill its verification obligations
Obviously, the regulatory difficulties of the Binance crypto company are not about to settle down. After lawsuits in the United States, and a suspension in Nigeria, the exchange is now the target of a legal investigation in France.
Information revealed on Friday June 16 show that an investigation is opened against Binance by the Paris prosecutor’s office. Justice essentially suspects the French subsidiary of Binance of having failed to meet the requirements concerning the Know Your Customer (KYC) procedure.
This grievance is not the only one against Binance. He is also blamed “acts of illegal exercise of the function of service provider on digital assets (PSAN)”. The company would thus have, without the legal authorization issued by the AMF, promoted its activities to French users.
The most serious suspicions weighing on Binance concern the money laundering acts of which it is allegedly guilty. Acts, aggravated “by competition with investment, concealment, conversion operations”. A set of activities “carried out by perpetrators of offenses that have generated profits.
The investigation has been led by the judicial finance investigation department of the specialized interregional jurisdiction of Paris since February 2022. As part of this procedure, the company’s premises were recently searched.
The raid enabled the authorities to get their hands on documentary and computer elements, the analysis of which is in progress. For its part, Binance indicates that it “respects all the laws in France as in all countries”.
The results of the investigations carried out against the platform may not point in this direction. If so, could Binance suffer a suspension in France as was the case recently in Nigeria?
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