Binance, the largest cryptocurrency exchange, is under preliminary investigation by the Paris prosecutor’s office for both illegal customer solicitation and aggravated money laundering, French daily Le Monde reported on Friday.
“In France, on-site visits by regulators and inspectors are part of the regulatory obligations that all financial institutions must adhere to. Last week we had an on-site visit from the relevant authorities,” a Binance spokesperson said.
“We will not comment on the details of law enforcement or regulatory investigations, except to say that information about our users is kept secure and is only provided to government officials upon receipt of proper documented justification.”
The Paris prosecutor’s office did not immediately respond to a request for comment.
The reported investigation follows several setbacks for Binance, including a June 5 decision by the US Securities and Exchange Commission (SEC) to charge the company with evading securities laws. Binance disputes the SEC charges.
Earlier on Friday, the company said it was leaving the Dutch market because it had been unable to meet registration requirements to operate as a virtual asset service provider.
In May last year, Binance said it had registered with the French exchange regulator, adding that it was looking to open a regional headquarters in France.
A group of French crypto investors filed a criminal complaint against Binance in December, accusing it of misleading the public and promoting its services before it was legally allowed to do so.
It was not clear if it was that complaint that led to the preliminary investigation by Paris prosecutors.
© Thomson Reuters 2023
(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)
