It seems that currently, Binance, which is the world’s largest cryptocurrency exchange is surrounded by regulatory uncertainties and legal battles throughout the globe now.
A new development on Friday 16 June disclosed that the Paris Prosecutor’s office reported that Binance is likely to face an inquiry for illicit canvassing of clients and aggravated money laundering.
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As reported by the Paris Prosecutor’s office, “the investigation is in 2 parts. On 1 side, it is about the unauthorized operation of the virtual assets service provider. Then on another side, it is about aggravated money-laundering”.
Of course, Binance refused to make comments on the ongoing investigation or particulars of law enforcement.
Instead, it explained that they hold the details of their users safe and wouldn’t offer them to the authorities upon requirement.
More Details of the Case
Binance stated in May last year of registering with the French market regulator.
It also added that it is veering towards opening up its regional headquarters in France.
However, a group of French cryptocurrency investors took legal action against Binance by filing a criminal complaint against the exchange last December.
The complaint accused Binance of illegally promoting its services before receiving approval from the appropriate authorities and misleading the general public.
Binance Response to the Latest Development
The largest cryptocurrency exchange publicize its response to the latest allegations which were announced by the Paris Prosecutor’s Office.
According to Binance, conducting an on-site visit by regulators is a part of their duties in France.
“Moreover, every financial institution is expected to comply with the rule. So, last week, we conducted an on-site visit by the appropriate authorities” say a Binance spokesperson.
Furthermore, Changpeng Zhao the CEO of Binance called this new development another FUD.
He further stated that the surprise on-site-visit of the regulated businesses is the norm in France and these rules relate to cryptocurrency exchanges as well.
The crypto exchange reported that the appropriate French Authorities made an on-site visit last week.
It was reported that Binance worked together with the inspectors and adhered to all their responsibilities.
In addition, the world’s biggest crypto exchange said that its team will collaborate with French law enforcement agencies and regulators to reach a high standard.
The Impact of the Latest Development on Binance
Due to this latest investigation, the crypto exchange Binance experienced several setbacks.
One of the setbacks is a decision made on June 5 by the United States SEC to litigate the exchange for evading the securities laws which Binance is disputing.
Earlier today, Binance announced its withdrawal from the Dutch market due to its inability to reach the country’s registration requirements and obtain a license to operate as a virtual asset service provider.
That notwithstanding, the biggest crypto exchange globally applied also to be withdrawn from Cyprus’ register of cryptocurrency asset service providers.
