Binance is currently facing some serious legal challenges around the world. Recently, authorities in France have launched an investigation into the exchange. They’re looking into allegations of money laundering and tax fraud, with links to drug trafficking.
This investigation covers the period from 2019 to 2024 and isn’t just limited to France. It will also include all European Union countries.
This isn’t the first time Binance has caught the French government’s attention. They’ve been under scrutiny since 2022. Reports suggest that Binance has struggled to implement proper Know Your Customer (KYC) procedures. This is crucial for monitoring users and preventing potential money laundering activities.
A spokesperson for Binance expressed disappointment over the decision by the Paris prosecutor’s office to escalate this long-standing issue to the judiciary. They emphasized that Binance denies all allegations and is ready to fight any charges that come its way.
According to data from Cointelegraph, Binance has faced legal challenges in at least ten countries between 2021 and 2025. The accusations range from violating Anti-Money Laundering (AML) laws to operating without proper licenses. Between 2023 and 2024, the exchange encountered issues with six countries: Australia, Belgium, Canada, India, Nigeria, and the United States. The most notable case happened in the U.S., where Binance agreed to pay $4.3 billion for breaking local AML laws and operating as an unregistered money transmitter.
Richard Teng, the CEO of Binance, acknowledged that there were “gaps in compliance” as the company grew from a small team to thousands of employees. By December 2023, their user base exceeded 166 million. He referred to these as “historical issues,” stressing that the safety and security of user funds remain a top priority.
As the largest cryptocurrency exchange in the world by trading volume, Binance processed over $21 billion in digital asset trades on January 27 alone, according to CoinGecko. By November 2024, the exchange increased its compliance team to 645 full-time employees, marking a 34% rise. This move is part of Binance’s commitment to regulatory compliance and ongoing transformation after settling with the U.S. government in 2023.
The spokesperson highlighted that Binance's efforts in Anti-Money Laundering and compliance have been recognized by key authorities, including the Financial Crimes Enforcement Network (FinCEN), the U.S. Department of Justice, and the Office of Foreign Assets Control (OFAC).