A Binance spokesperson noted that “in France, on-site visits by regulators and inspectors are part of the regulatory obligations that all financial institutions must abide by. We had an on-site visit last week by the relevant authorities.” .
“We will not comment on the specific details of law enforcement or regulatory investigations, except to say that information about our users is kept secure and is only released to government officials upon receipt of appropriate documented justification.”
The investigation follows several setbacks for Binance, including the June 5 decision by the United States Securities and Exchange Commission (SEC) to charge the company with evading securities laws. Binance rejects the SEC’s allegations.
Earlier on Friday, the company said it was leaving the Dutch market because it had been unable to meet the registration requirements to operate as a virtual asset service provider.
Binance has also applied to be removed from the Cypriot Crypto Asset Service Provider Registry.
In May last year, Binance said it had registered with the French market regulator, adding that it was looking to open a regional headquarters in France.
A group of French crypto investors filed a criminal complaint against Binance in December, accusing it of misleading the public and promoting its services before it was legally allowed to do so.