Binance cryptocurrency exchange to be investigated in Europe

Police and financial regulators in several European countries have begun cooperating with the U.S. Securities and Exchange Commission (SEC) to investigate the activities of the Binance crypto exchange. Protos writes about this with reference to sources.

Currently, European regulators are still evaluating Binance's case and have not complied with the SEC’s requests for information on the crypto exchange’s activities. Binance is registered in several European countries. Most European companies have declared small tranches of income ranging from several thousand euros to € 500,000 ($ 546,000), but some have declared up to € 200 million ($ 218 million) per year. Protos sources believe that the large number of subsidiaries probably helps make Binance’s operations opaque and difficult to understand.

Since the beginning of the month, Binance has left several European countries. Currently, the Cypriot division is in the process of canceling its local registration as a cryptocurrency service provider. Representatives of the exchange stated that they plan to leave Cyprus to focus on ensuring full compliance with the new European Union regulations on cryptocurrencies (MiCA).

In addition, the exchange left the Netherlands because it was unable to obtain a virtual asset service provider (VASP) license. Starting June 16, the platform stopped registering new users in the Netherlands.

Last week, the Paris prosecutor’s office launched an investigation into Binance’s French subsidiary. Authorities are investigating the exchange’s illegal activities as a provider of digital asset trading services (PSAN), as well as money laundering.

French prosecutors also suspect the company of failing to fulfill its obligations under the Know Your Customer (KYC) procedures and violating French law, which requires mandatory registration with the Financial Markets Authority (AMF). The authorities have already searched the exchange’s office and seized documents and computer systems, which will be included in the case.

Regarding the fight between the US regulator and Binance, a judicial investigation initiated by the US Securities and Exchange Commission (SEC) against Binance showed that the platform’s activities are significantly influenced by a shadowy leader who may be behind questionable transactions, according to the SEC. Most likely, this is Guangyin Chen, aka Haina Chen.

According to Forbes, Chen runs eight companies that are closely associated with Binance. Dozens of bank accounts belonging to at least 27 organizations registered in 13 jurisdictions have been opened under the top manager’s signature.