Binance, the world’s largest cryptocurrency exchange, recently announced its departure from the Netherlands after failing to obtain a license from the Dutch central bank. This decision follows regulatory efforts to tighten oversight in the crypto industry.
Additionally, Binance is currently under investigation by French authorities.
The probe focuses on the exchange’s anti-money laundering procedures. These developments reflect the increasing scrutiny faced by Binance in various jurisdictions.
Media reports in France reveal that Binance, the world’s largest cryptocurrency exchange, is currently under investigation by French authorities.
French authorities are investigating Binance for its anti-money laundering procedures, which coincides with the company’s decision to exit the Netherlands due to the lack of a license from the Dutch central bank.
A spokesperson from Binance stated, “We underwent an on-site visit from the relevant authorities last week. Binance fully cooperated and fulfilled all obligations as required. We maintain close collaboration with regulators and law enforcement agencies to meet all compliance requirements and maintain high standards.”
In recent years, cryptocurrencies have gained popularity as a trading asset class among both retail and institutional investors.
Nonetheless, concerns have arisen regarding the risks associated with cryptocurrencies, primarily due to their highly volatile nature and significant price fluctuations.
Global regulators are intensifying their efforts to increase transparency within the crypto exchange industry.
Binance is encountering difficulties not only in Europe but also in the United States. The exchange is currently facing lawsuits from two financial regulators, the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission, alleging illegal operations in the US and disregard for investor protection laws.
In addition, the SEC has leveled allegations against both the company and its founder, Changpeng Zhao, regarding the mishandling of customer funds.
Binance has stood by its practices and is currently engaged in discussions with the SEC regarding its US operations, aiming to prevent a complete asset freeze.
Binance has issued a warning stating that its operations would come to a halt if a US judge grants the regulator’s request for an asset freezing order.
As per the Financial Conduct Authority’s website, Binance’s UK unit, Binance Markets Limited, voluntarily requested to be removed from the register on May 30. Consequently, Binance no longer possesses authorized entities in the UK.
Source : bbc.com