Binance responds to reports
Major cryptocurrency exchange Binance has commented on reports that the company is under investigation by French regulators.
Binance is under investigation for providing illegal digital asset services and involvement in money laundering, some foreign media reported on the 16th. Binance CEO Changpong Zhao (CZ) claimed that the reports were “bad rumors (FUD).”
In France, surprise (no advanced notice) on-site inspections of regulated businesses are the norm, for banks, and now for crypto too.
The surprise visit for Binance France happened a couple of weeks ago. It’s not “news”. Binance France cooperated fully.
Binance also… https://t.co/xdbLc5jXBW
— CZ 🔶 Binance (@cz_binance) June 16, 2023
Binance announced in May 2022 that it had registered as a service provider for digital assets in France. According to CoinDesk, Binance was accused of providing services illegally before it received regulatory approval. Binance is reportedly under investigation after documents and computers have been seized.
connection: Cryptocurrency exchange Binance completes registration in France
Binance commented on the report in response to the “Wu Blockchain” tweet. He declined to elaborate on regulatory investigations or law enforcement actions, but he explained:
Binance was investigated last week after regulators visited and investigated all financial institutions in France. We look forward to continuing to work with regulatory and law enforcement agencies.
Your information is securely stored and we do not provide it to governments without a legitimate, documented reason.
In France, on-site visits by regulators and inspectors, are part of regulatory obligations to which all financial institutions must adhere.
We had an on-site visit last week by the relevant authorities. Binance, as always, was fully collaborative and we met our…
—Binance (@binance) June 16, 2023
CZ also noted that it was common practice for regulators to visit and investigate registrants without prior notice. Binance said it was under investigation a few weeks ago and said it was cooperating fully. He added that this is not new news, and that banks and cryptocurrency companies alike are being scrutinized out of the blue. Mr CZ reiterated that France is the base of operations in Europe.
connectionBinance to be headquartered in France?
Binance and CZ do not provide detailed explanations, so they do not mention any business or involvement in money laundering prior to registration with regulatory bodies.
Withdraw from the Dutch market
Binance announced on Wednesday that it would exit the Dutch market after failing to obtain business license from the Dutch regulator. From the 17th of next month, existing users will only be able to withdraw assets.
The company said it will continue to focus on complying with regulations, and explained that in Europe, it is preparing to comply with the new regulation “MiCA”. It did not explain why it was unable to obtain the approval, but stated that CoinDesk “failed to obtain a license indicating that it met anti-money laundering standards.”
connection: Dutch central bank fines 470 million yen to Binance
When Binance filed for the revocation of its business license in Cyprus, it said it would focus on dealing with MiCA.
connection: Binance applies for revocation of business license in Cyprus
What is Binance
Operates a major virtual currency exchange with a large number of traded brands, trading volume, and registered users. In addition, we are developing a wide range of businesses such as the activities of the venture capital department, the provision of educational content, and philanthropic activities. In November 2010, the company announced its entry into the Japanese market.
connection: What is Binance, the world’s largest virtual currency exchange?