Binance is facing ongoing regulatory challenges, including its exit from the Netherlands and a French investigation into “aggravated” money laundering.
The exchange has encountered setbacks in securing a virtual asset service provider (VASP) license in the Netherlands. As a result, it is no longer accepting new users, and from July 17, existing users will be unable to conduct purchases, trades, or deposits.
Binance asserts that it complies with EU standards for preventing money laundering and terrorism financing, as demonstrated by its registrations in multiple EU countries including France, Italy, Spain, Poland, Sweden, and Lithuania. However, according to CoinDesk, the company is under investigation in France for potentially operating illegally as a digital asset service provider prior to obtaining regulatory approval in May.
The investigation reportedly focuses on possible “aggravated money laundering” associated with investment operations and the concealment and conversion of funds, allegedly linked to illicit activities that generated profits.
In the United States, the SEC has filed a lawsuit against Binance and its CEO, Changpeng Zhao, alleging multiple violations of securities laws and claiming that the exchange has engaged in an “extensive web of deception.”