Binance Under Investigation in France, Accused of ‘Aggravated’ Money Laundering

Binance is under investigation by local authorities for the “illegal” provision of digital asset services and “acts of aggravated money laundering,” the Paris public prosecutor’s office has confirmed to CoinDesk.

Allegations against Binance from French prosecutors “relates on the one hand to acts of illegal exercise” of operating as a digital asset service provider and “acts of aggravated money laundering, by competition with operations of investments, concealment, conversion, the latter being carried out by perpetrators of offenses having generated profits,” the Paris’ public prosecution office told CoinDesk. Binance is registered as a PSAN or digital asset service provider, with the French financial regulator.

Binance, which is facing a lawsuit from the U.S. Securities and Exchange Commission alleging failure to register as a trading platform and the sale of unregistered securities, is suspected of having canvassed French customers through its local arm outside the legal framework until 2022, news publication Le Monde reported earlier on Friday.

The Paris public prosecutor confirmed to CoinDesk that an investigation concerning Binance carried out by the specialized interregional jurisdiction of Paris (JIRS) led to a referral to the SEJF, an anti-financial crime arm of the government, in February 2022.

“The documentary and computer elements collected during the search will now have to be the subject of an in-depth study,” the Paris public prosecutor said.

The news comes as Binance announces it is quitting the Netherlands after failing to obtain a license showing the company meets the country’s anti-money laundering (AML) guidelines.

CoinDesk has reached out to Binance for comment.

Jack Schickler contributed reporting.