Binance In The Hot Seat Yet Again—CZ Responds…• June 16, 2023 11:14 am • Comments
Binance is in the hot seat once again. …
According to French outlet Le Monde, the world’s premier cryptocurrency exchange is now under investigation by French authorities for ‘aggravated’ money laundering. …
Additionally, regulators claim that Binance was operating without a license for a short time before gaining regulatory approval in 2022.
The exchange responded by claiming that they always operate within the bounds of the law and told the public that the current investigation is simply a normal point of procedure in France. …
Multiple outlets confirmed:
JUST IN: 🇫🇷 #Binance under investigation in France for alleged money laundering.
— Watcher.Guru (@WatcherGuru) June 16, 2023
🚨 JUST IN: #Binance reportedly under investigation in France 🇫🇷 on money laundering accusations.
— Cointelegraph (@Cointelegraph) June 16, 2023
BREAKING: Binance is under investigation in France for alleged money laundering: Le Monde https://t.co/7Nco63XZyY
— The Block (@TheBlock__) June 16, 2023
CoinDesk broke the story in The United States:
The investigation relates to illegally operating as a digital asset service provider before it received regulatory approval in May 2022 and “aggravated money laundering by taking part in investment operations, concealment and conversion, the latter being carried out by perpetrators of offenses having generated profits,” the public prosecution office told CoinDesk.
Binance is registered as a PSAN, or digital asset service provider, with the French financial regulator, the AMF (Autorité des Marchés Financiers).
Binance CEO Changpeng Zhao responded to the developments:
“4. FUD. In France, surprise (no advanced notice) on-site inspections of regulated businesses are the norm, for banks, and now for crypto too. The surprise visit for Binance France happened a couple of weeks ago. It’s not “news”. Binance France cooperated fully.
Binance also isn’t the only crypto business inspected. This happened to other well known crypto businesses in Paris too. Binance France 🇫🇷 continues to be our flagship center in Europe.”
In France, surprise (no advanced notice) on-site inspections of regulated businesses are the norm, for banks, and now for crypto too.
The surprise visit for Binance France happened a couple of weeks ago. It's not "news". Binance France cooperated fully.
Binance also… https://t.co/xdbLc5jXBW
— CZ 🔶 Binance (@cz_binance) June 16, 2023
Binance also responded to the recent news by issuing this statement:
“In France, on-site visits by regulators and inspectors, are part of regulatory obligations to which all financial institutions must adhere.
We had an on-site visit last week by the relevant authorities. Binance, as always, was fully collaborative and we met our obligations accordingly. We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards.
Binance invests considerable time and resources into cooperating with law enforcement globally. We abide by all laws in France, just as we do in every other market we operate.
We will not comment on the specifics of law enforcement or regulatory investigations except to say that information about our users is held securely and only provided to government officials upon receipt of documented appropriate justification.”
Protos highlights Binance’s response:
The exchange also told Le Monde that it couldn’t comment on the investigation, but assured the paper that it “respects all the laws in France as in all the countries,” and that “customers’ information is stored securely and is only provided to the authorities in the context of a [justified legal request].”
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