Binance Issues Statement on Investigations in France
Binance, the world’s largest cryptocurrency exchange, has recently faced scrutiny regarding an investigation by French regulatory authorities for alleged money laundering activities. In response to these reports, Binance has issued an official statement.
The exchange clarified that the investigation was actually an on-site visit conducted by regulators and emphasized that such visits are a standard procedure for all financial institutions. However, Binance did not disclose the specific details of the investigation carried out by the law enforcement agency.
Despite this development, Binance reassured its customers that their information is securely held. The exchange also highlighted that access to customer data by authorities requires documented and appropriate justification. The official statement read:
“We had an on-site visit last week by the relevant authorities. Binance, as always, was fully collaborative, and we met our obligations accordingly. We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards.”
Changpeng Zhao, also known as CZ and the CEO of Binance, commented on the matter through his Twitter account. He referred to the reports as FUD (fear, uncertainty, and doubt) and stated that the “surprise visit” was not unexpected. He further mentioned:
“Binance France cooperated fully. Binance also isn’t the only crypto business inspected. This happened to other well-known crypto businesses in Paris too. Binance France continues to be our flagship center in Europe.”
Additional Developments: Binance Exiting The Netherlands
In a subsequent announcement, Binance revealed its decision to exit The Netherlands. The exchange cited its inability to register as a Virtual Asset Service Provider (VASP) in the region. Binance has already ceased onboarding new users, and starting tomorrow, users will only be able to utilize the withdrawal service. The announcement stated:
“Binance has been in a comprehensive registration application process as a virtual asset service provider (VASP) with the Dutch regulator. Although we explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately, this has not resulted in a VASP registration in the Netherlands at this time.”
Binance currently maintains a presence in various European countries, including France (its former headquarters), Italy, Sweden, Poland, Spain, and Lithuania.
Notably, this news follows recent reports suggesting Binance’s application for deregistration in Cyprus. While no official announcement has been made regarding this matter, evidence of the decision to retract its efforts in the island nation has been found on Securities websites.
The registration covered Binance’s services related to fiat-to-crypto conversion, digital asset sales, and cryptocurrency custody. Furthermore, reports indicate that Binance had not yet initiated its business services in the region.
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