In a recent development, Binance, the world’s largest cryptocurrency exchange, is facing serious allegations of “aggravated money laundering” in France. French prosecutors initiated an investigation into Binance in June 2023, looking into allegations of money laundering and the operation of an unauthorized exchange. The raid occurred just days after Binance France President, David Prinçay, stated that the exchange operates under French and European regulators. However, conflicting views have emerged regarding the separation of the exchange’s assets.The US Securities and Exchange Commission (SEC) argues that Binance user funds are at “significant risk” due to alleged ownership ties between Binance-related companies and founder Changpeng Zhao. This has led to an internal shakeup within Binance, with high-ranking executives leaving the exchange, raising concerns about its stability and future direction.Binance announced its registration with France’s market regulator in May of the previous year, but faced a criminal complaint from French crypto investors in December for misleading the public and promoting its services before obtaining legal authorization. Founder Changpeng Zhao has dismissed the allegations and the police inspection as “FUD” (Fear, Uncertainty, and Doubt), but the situation has cast a shadow over the exchange’s regulatory compliance and potential impact on the cryptocurrency industry.In addition to the allegations, Binance has experienced a significant decline in its EUR-denominated weekly spot trading volume. The volume dropped to $160 million in October, a sharp decrease from $1.3 billion in March. One factor contributing to this decline is the suspension of on-ramp services by Binance’s Euro banking partner, Paysafe. This suspension has affected the exchange’s ability to attract and retain Euro-denominated traders.On the flip side, Binance’s native token, BNB, has experienced notable losses amidst the recent uptrend in the broader cryptocurrency market. The token is trading at $211, reflecting a 0.3% decline over the past 24 hours and a 3.6% drop over the last 30 days.The outcome of the investigation and the decline in trading activity are closely monitored by market participants and industry observers, as they could have significant implications for Binance’s operations and regulatory oversight of cryptocurrency exchanges.

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Information	Details
Geography	Europe
Countries	🇫🇷 🇺🇸
Sentiment	neutral
Relevance Score	1
People	David Prinçay, Stéphanie Cabossioras, Changpeng Zhao
Companies	US Securities and Exchange Commission (SEC), Kaiko, Paysafe, Binance
Currencies	Euro, US Dollar, BNB
Securities	None