Binance lands in French probe following Netherlands exit

The largest cryptocurrency exchange in the world, Binance, is being looked into by French authorities, who are particularly interested in learning more about the company's anti-money laundering procedures.

After failing to obtain a licence from the Dutch central bank, the business announced that it was leaving the country, prompting the investigation.

The BBC reports that Binance confirmed in a statement that it would comply and that French officials had visited its offices the week before.

"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," a company spokesperson said.

In recent years, the trading of cryptocurrencies has grown in popularity among both retail and institutional investors.

However, due to the wildly fluctuating prices of cryptocurrencies, questions have been raised about the risks that come with using them. International regulators have increased the pressure they apply to cryptocurrency exchanges in an effort to increase transparency.

Given that Binance is confronted with difficulties in both the United States and Europe, the company enjoys the best of both worlds.

The Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), two financial watchdogs in the US, are suing the exchange on the grounds that it has been operating there illegally and in violation of laws enacted to protect investors.

Additionally, the SEC has charged Changpeng Zhao, the company's founder, with mishandling client funds.

Furthermore, Binance defended its methods, saying a total asset freeze is being avoided by the company's US operations through current discussions with the SEC.

Binance has issued a warning that if a US judge approves the regulator's request for an asset freezing order, all of its operations will "grind to a halt."

According to the Financial Conduct Authority's website, Binance Markets Limited, the company's unit in the UK, was removed from the FCA's register on May 30 at the company's request, leaving it without any authorised entities in the country.