The scrutiny surrounding Binance is heightened by its legal troubles in the US, where the Securities and Exchange Commission (SEC) under its previous Chair Gary Gensler, accused the exchange in June 2023 of unlawfully providing services to US customers and misappropriating customer funds.
The US Treasury Department and the Department of Justice (DOJ) also charged Binance with violating AML regulations, resulting in a hefty fine of $4.3 billion. This ultimately led the exchange’s former CEO Changpeng Zhao, CZ, to resign and serve four-months in prison.
Additionally, individuals who have been fined for offenses related to concealing criminal proceeds, financing terrorism, or violations of foreign exchange and capital market laws are prohibited from operating a business in this sector. This regulatory framework has led South Korean authorities to carefully evaluate Binance’s qualifications for entering the market.
The French prudential supervision and resolution authority, known as ACPR, has been conducting thorough checks on numerous exchanges, including Binance, since late last year, according to confidential sources familiar with the situation.
At the time of writing, Binance Coin (BNB), the native token of the exchange, has been one of Friday’s worst performers following weeks of major rallies towards new all-time highs above $1,360. The fourth-largest cryptocurrency by market cap is currently trading at $1,074, having recorded losses of 7% over the last 24 hours.
Featured image from DALL-E, chart from TradingView.com
