French authorities have intensified their investigation into Binance, a global cryptocurrency exchange, over allegations of money laundering and tax fraud. Binance has denied these claims, emphasizing its investments in compliance measures such as anti-money laundering (AML) protocols, Know-Your-Customer (KYC) processes, and regulatory cooperation, according to Reuters.
Crypto entrepreneur Shoumi, said the timing of the investigation announcement is meant to increase the French Government's leverage over the crypto industry."The timing is perfect, two days after the Senate vote on unrealized capital gains," "the State attacks to secure full cooperation, just like with Telegram. NOT TWICE."
The French Senate recently approved the 2025 budget, which includes an "unproductive wealth" tax applicable to digital assets like Bitcoin. This measure would impose an annual tax on unrealized cryptocurrency gains, taxing holders based on the increased value of their assets even if they have not sold them.
Cryptonite reports that in August 2024, Telegram CEO Pavel Durov was arrested in France due to charges related to the platform’s role in facilitating online activities, including allegations of illegal content distribution. Following his arrest, Telegram noted an increase in data requests from U.S. authorities, fulfilling 900 requests in 2024. The European Union is also investigating whether Telegram underreported its user base, potentially subjecting it to stricter regulations.
Shoumi, co-owner of Syndi'chads and a cryptocurrency trader and analyst focused on high-growth altcoins and Ethereum, commented on the situation. "The French government's actions against Binance come just two days after the Senate's vote on taxing unrealized capital gains," he said. He drew parallels with the regulatory pressure previously exerted on Telegram.
Binance provides trading services globally and launched the Anti-Scam Refund Initiative in 2024. This initiative recovered $9.1 million for scam victims and prevented over $129 million in potential losses by integrating AI-powered risk management and real-time user alerts while partnering with law enforcement agencies for enhanced fraud prevention.