French financial regulator is investigating the largest cryptocurrency exchange in the world. This was reported by the newspaper Le Monde, citing the prosecutor’s office in Paris.
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French authorities began to investigate the Binance exchange
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Authorities suspect the management of the stock exchange of failing to comply with obligations to verify the KYC procedure (know your customer). Such procedures should be carried out by financial services to prevent the use of cryptocurrency exchanges for money laundering.<br
The investigation began in February 2022. The Paris prosecutor’s office specified that they are investigating acts of “aggravated money laundering through participation in investment operations.
The company is suspected of violating French law regulating crypto-asset platforms. Binance, which has been offering its services in France since 2020, is suspected of buying advertising to promote its activities in the country before registering with the proper authorities.
Binance is already under investigation by the U.S. Securities and Exchange Commission (SEC), which accuses the trading platform of violating securities laws. The Binance team denies any wrongdoing and says it will “vigorously oppose the allegations” made by officials;
Meanwhile, Binance’s U.S. unit has already hired lawyer George Canellos, who worked for the SEC from 2009 to 2014.</nbsp;And former SEC official John Reed Stark
believes there is a possibility of criminal charges being filed by the U.S. Department of Justice against Binance executives;