Binance issued a statement and confirmed an on-site visit from relevant authorities in France. Representatives from Binance cited by bbc.com also revealed that they will fully cooperate with law enforcement agencies and regulators on all ongoing compliance requirements with the aim of upholding a high standard.
Apart from entering the crosshairs of French authorities, Binance has also exited the Netherlands after it failed to obtain a licence from the Dutch central bank. According to theguardian.com, starting with 17 July 2023, Dutch residents will only be able to withdraw their assets from the platform and further trading or deposits will not be possible. Binance advised users in the Netherlands to withdraw any funds that they have left over in their accounts.
At the beginning of June 2023, the US Securities and Exchange Commission charged Binance Holdings Ltd, which operates the largest crypto asset trading platform in the world, as well as its founder, Changpeng Zhao, with a variety of securities law violations. The legal battle between the SEC and Binance is still ongoing at the time of writing, but the two entities are working together to reach a consensus that would avoid a total Binance asset freeze.
The deal aims to protect billions of dollars in customer funds without shutting the exchange down while the SEC’s lawsuit proceeds. The news was revealed during a hearing in Washington presided by US District Judge Amy Berman Jackson, who expressed that if a deal is struck, she would no longer need to rule on the SEC’s request for a temporary restraining order.
US authorities believe that crypto assets operate just like other investments that are subject to oversight, and they are trying to police the cryptocurrency industry more aggressively as a result. This increased scrutiny is also partially justified by the high-profile collapse of cryptocurrency exchange FTX, which took the entire industry by surprise by filing for bankruptcy protection in November 2022.
In the UK, Binance Markets Limited was removed from the register of the Financial Conduct Authority on 30 May at the company’s request. According to the FCA, the move left Binance with no authorised entities in the UK.
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