The Public Prosecutor's Office of France has launched a formal investigation into Binance, one of the world's largest cryptocurrency exchanges, over alleged violations of anti-money laundering (AML) statutes. The probe focuses on activities that occurred between 2019 and 2024, with investigators claiming that Binance processed funds linked to money laundering, tax fraud, and criminal finance networks, including potential ties to drug trafficking.
French authorities, including the ACPR (Prudential Supervision and Resolution Authority) and the AMF (Financial Markets Authority), are conducting expanded AML inspections as part of a broader push to enforce European Union standards under the MiCA (Markets in Crypto-Assets) regulation. Binance has been instructed to enhance its risk management systems, internal controls, and compliance frameworks to meet these rigorous requirements. The exchange asserts that it maintains strong AML policies and adheres to regional laws, but the investigation could lead to significant fines, operational restrictions, or disqualification from MiCA licensing if deficiencies are not addressed.
This scrutiny underscores the mounting regulatory pressure on crypto exchanges globally, with implications for the wider industry. If Binance fails to comply within designated grace periods, it may face penalties that could disrupt its services in France and the EU, affecting user confidence and trading volumes. The case highlights the increasing focus on compliance in the evolving crypto market, potentially setting a precedent for how exchanges operate under standardized regulatory frameworks.
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