Binance Under Investigation in France Over Alleged Money Laundering and Tax Fraud

• France has launched an investigation into Binance for serious allegations, including aggravated money laundering, tax fraud and drug trafficking.
• The investigation covers Binance’s activities from 2019 to 2024 in France and the EU.
• The exchange denied the allegations and will battle with prosecutors.

French authorities are investigating Binance for aggravated money laundering, including ties to tax fraud and drug trafficking, and for operating illegally as a digital asset service provider.

The probe, covering activities from 2019 to 2024, was sparked by user complaints, but Binance denies the charges and vows to fight them.

France Launches Investigation on Binance

The National Jurisdiction for the Fight against Organized Crime (JUNALCO) has launched a judicial investigation into Binance for aggravated money laundering, laundering from tax fraud and drug trafficking.

Among the allegations is that it is also operating illegally as a digital asset service provider (DASP).

The investigation covers activities from 2019 to 2024 in France and the EU, triggered by user complaints about financial losses and misleading information.

According to prosecutors, the AMF found Binance unregistered and unlicensed during this period. Its PSAN registration began in May 2022.

Regulatory violations include non-compliance with Know Your Customer (KYC) requirements, potentially facilitating money laundering and running influencer advertisements before legal registration, violating French law.

The investigation, led by agencies, like the DGCCRF, aims to assess the extent of the offenses and the involvement of Binance’s managers and affiliates.

Binance Denies Allegations

“The investigations focus in particular on how Binance met or did not meet its obligations in terms of knowing your customer,” prosecutors said.

“This made the group likely to have contributed to the habitual laundering of sums from various offenses, in particular drug trafficking and tax fraud,” the prosecution added.

However, according to FT, Binance denied the allegations and said that it “will vigorously fight any charges made against it.”

“Binance is deeply disappointed that the matter, which is several years old, is being further investigated by French authorities,” the exchange stated.