French investigators launched a judicial investigation against the world’s largest exchange in the world, and Nabanis for various financial crimes. The allegations made by French investigators include money laundering, tax fraud, drug trafficking and other illegal activities.
The effects of Binance
The start of this investigation will have severe impacts on Binance and its reputation. Legal challenges often lead to major financial penalties, and also operating restrictions. For example, Cocoin recently acknowledged that he was guilty of working without a license to transfer money in the United States, as the stock exchange had to pay a large amount of $ 300 million of sanctions and fines. As part of the settlement, Kucoin will also have to leave the United States for two years.
Previous incidents
Likewise, this is not the first time that Binance has faced such a legal situation. In 2021, the US Department of Justice and internal revenue service in Binance due to possible money laundering and tax crimes, and in 2022, there was also a report issued by Forbes where a global drug conspiracy was used to wash millions of dollars in the cryptocurrency.
FUD mode
This situation has the ability to create a state of fear, uf and doubt in the cryptocurrency market. This investigation may lead to fear of organizational procedures, uncertainty about the future of Binance and society may suspect compliance measures. This investigation can also lead to low user confidence, investor confidence, low trading sizes and market fluctuations.
In response to previous allegations, Binance was friendly and cooperative with the organizational authorities. The Stock Exchange also confirmed that it has developed systems that discover and prevent illegal activities through the platform. However, when such situations arise again and again, this reflects that the organizers are still concerned about the effectiveness of the system used.
Until time there is no result of this investigation, this step will act as a negative exchange of exchange. This also indicates that the organizers are searching and the stock exchanges must adhere to the aforementioned guidelines.
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