Binance, the world's largest cryptocurrency exchange, is facing an anti-money laundering (AML) investigation by French authorities. The Prudential Supervision and Resolution Authority (ACPR) under the Bank of France is conducting inspections to ensure compliance with AML and counter-terrorist financing requirements ahead of the full implementation of the EU's Markets in Crypto Assets (MiCA) regulation in June 2026.
The probe, which began in late 2024, reviews Binance's internal governance, reporting systems, and adherence to previous recommendations from European regulators. Failure to comply could result in sanctions or denial of EU-wide licenses, potentially restricting Binance's operations across the 27 EU member states. Binance has asserted that the inspections are routine and is cooperating fully, but the ACPR has the authority to impose severe penalties if standards are not met.
This regulatory scrutiny has directly impacted Binance Coin (BNB), with the token's price dropping 11.73% in the last 24 hours to $1,042.87, down from a recent target of $1,500. Analysts warn that European investors might initiate sell-offs if restrictions are enforced, adding downward pressure. The investigation is part of a broader oversight of crypto exchanges in France, with only a few entities like Deblock and CACEIS having received MiCA approval so far.
Additionally, the broader crypto market experienced significant liquidations, with over $1.2 billion wiped out in 24 hours, including $920 million in long positions and $210 million in short positions. More than 305,000 traders were liquidated, with assets like Bitcoin and Ethereum also affected, though BNB was among the most impacted. Binance's history includes a $4.3 billion settlement with U.S. authorities for money laundering charges, and the exchange recently adjusted its ownership structure to comply with French rules after founder Changpeng Zhao's conviction.
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