CEFIREGULATION

Foreign media exposes Binance's involvement in money laundering investigation by French authorities, Zhao Changpeng refutes: Routine investigations are common in France.

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Foreign media exposes Binance

Foreign media revealed that Binance's French division has been under investigation by French regulatory authorities since early last year. The investigation includes unauthorized activities, money laundering, inadequate KYC procedures, and unregistered promotions. However, Binance and its founder Zhao Changpeng CZ clarified in tweets, stating that routine inspections by regulatory authorities are common in France, and emphasizing that the French division will continue to be Binance's flagship center in Europe.

Foreign Media: Binance France Under Investigation by French Regulators Since Early Last Year

According to French newspaper Le Monde, Binance's French division has been under preliminary investigation by the Paris Financial Prosecutor's Office since February 2022. The scope of the investigation includes allegations of abuse of power as a provider of digital asset services and money laundering activities related to investment and trading.

Binance is registered in France as a provider of digital asset services (PSAN), but reports suggest that Binance has failed to fulfill its obligations regarding Know Your Customer (KYC) verification for users. This aligns with the SEC's accusations against Binance, as the SEC stated that a significant number of users had not completed KYC verification by mid-2022.

SEC Lawsuit Against Binance Summary: The U.S. Securities and Exchange Commission (SEC) accuses Binance Holdings and Zhao Changpeng of violating securities laws, BNB falls below recent lows, CZ responds 4

Although Binance is registered, there are suspicions that Binance extensively advertised and promoted its trading platform in France before officially registering with the French Financial Markets Authority (AMF) in May 2022.

Binance's Response: Full Cooperation with Regulatory Authorities

Binance responded by stating that cooperating with regulatory authorities and on-site inspections by investigators in France is an obligation for all financial institutions. Last week, relevant departments conducted an investigation into Binance's French division, and Binance cooperated as usual. They intend to continue closely cooperating with regulatory authorities on all compliance requirements in the future.

Zhao Changpeng: FUD, Just Routine Investigations

CZ stated that surprise inspections on regulated companies by France are routine procedures, applicable to banks and even emerging crypto companies in recent years. He emphasized:

The surprise inspection on Binance's French division occurred a few weeks ago, and this is not "news." Binance fully cooperated with the investigation. Binance is not the only crypto company under investigation; other prominent crypto companies in Paris are also being investigated. Binance's French division will remain the flagship center of Binance in Europe.

Confusion arises as Binance claims the surprise inspection was last week, CZ says it was a few weeks ago, while Le Monde's report indicates that Binance France has been a subject of preliminary investigation since February 2022. What is the truth?