According to a Reuters report dated January 28, 2025, French investigators have opened a formal probe into Binance. The world’s largest crypto exchange is facing charges over allegations of money laundering. However, this isn’t the first time the company is under fire. It has faced scrutiny for alleged non-compliance with local laws. In 2021, Binance came under investigation in the US for potential violations of anti-money laundering (AML) regulations.

NEWS: Binance under investigation for money laundering, tax fraud, and drug trafficking in France
— Jacob King (@JacobKinge) January 28, 2025

Similarly, authorities in the UK, Japan, and Germany have issued warnings or taken action against the platform for operating without proper licenses.

“Deeply Disappointed,” The Company Says

“Binance fully denies the allegations and will vigorously fight any charges made against it,” the company said. The matter was “several years old.” French authorities are investigating Binance for alleged “acts of aggravated money laundering” and unregistered provision of digital asset services. The probe is being led by the specialized financial crime unit of France’s public prosecutor’s office in Paris. Authorities suspect that the company may have facilitated illicit financial flows by failing to implement robust AML measures.

The investigation reportedly centers on whether Binance allowed transactions linked to criminal activities such as tax fraud and drug trafficking. Additionally, regulators are scrutinizing whether the platform operated in France without proper registration under local laws governing digital asset service providers (DASPs).

Binance Named In India’s $97 Million Crypto Tax Probe

Last year, Binance was named in India’s tax investigation concerning alleged tax evasion amounting to $97 million, according to a statement by Minister of State for Finance Pankaj Chaudhary in Parliament. The investigation stemmed from the Indian government’s intensified efforts to regulate and tax the cryptocurrency sector. The report alleges that the company was involved in activities that resulted in significant tax discrepancies.