As per recent reports, the French Authorities are investigating Binance crypto exchange over multiple allegations like tax fraud, money laundering and drug trafficking. Binance, the largest crypto exchange, was also investigated back in 2022 regarding supposed illegal canvassing of clients and money laundering. As per another report, authorities investigated Binance over its failure in Know-your-customer (KYC) obligations.
Binance Faces Scrutiny for Money Laundering
Earlier, Binance also faced scrutiny for money laundering in the United States in 2023. The CEO of the Binance, Chandpeng Zhao, pleaded guilty to money laundering. Binance then agreed to pay $4B fine. Zhao paid $50M fine and he was also sent to prison for four months.
Binance Denies French Authorities’ Allegations
It is stated that Binance, which is the largest crypto exchange, feels disappointed over these allegations. Additionally, Binance argued that JUNALCO, French Publick Prosecutor’s Office, is referring to the matter which is several years old.
The spokesperson of the Binance told The Block that this is the policy of Binance that they usually do not respond to any allegation during the legal proceedings. But they did mention that they completely deny the allegations raised against Binance. Moreover, they also said that they will fight against these false allegations strongly.
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The spokesperson mentioned that the exchange in a true sense applies AML (Anti Money Laundering) policies. AML is basically a policy through which it is made sure that the company will not let anyone transact suspicious transactions. This makes sure that Binance never favours such false transactions which come under the umbrella of money laundering.
Binance Enforces KYC Policy and Leverages FATF for User Security
Binance’s reporter also retreated that they do follow the policy of KYC (Know-your-customer). It simply means that those who use Binance are required to first submit their personal documents. For this the customers are asked to enter their username and identity card number in order to provide financial security, by the world’s largest crypto exchange.
In this context, the spokesperson of the exchange also mentioned that they do have a Financial Action Task Force (FATF) to provide security for its users. If Binance finds anything suspicious or doubted the authorities take action against it through the Financial Action Task Force.