French authorities have initiated a judicial inquiry into Binance, the world's largest crypto exchange, for alleged involvement in money laundering, tax fraud, and drug trafficking.

Binance received regulatory approval in France as a Digital Asset Service Provider (DASP) in May 2022, falling under the jurisdiction of the Autorité des Marchés Financiers (AMF).

Despite its official registration, authorities have accused Binance of violating its DASP duties, raising the possibility of criminal charges against the exchange.

The current allegations in France echo those faced by Binance and its former CEO, Changpeng Zhao (CZ), in the United States in 2023, resulting in a record-breaking $4 billion fine for Binance and CZ stepping down.

The ongoing legal challenges in France represent another significant hurdle for Binance, amidst a backdrop of mounting regulatory pressures globally.

Recent investigations revealed that from 2019 to 2024, Binance conducted unauthorized activities in France and the EU, prompting the AMF inquiry. Additionally, the exchange allegedly engaged in pre-registration advertising through influencers, breaching French laws.

Furthermore, Binance's decision to transfer $20 million in BTC, ETH, and SOL to Wintermute has drawn criticism, with concerns raised about potential market manipulation by Wintermute exploiting retail investors through artificial liquidity.

Binance faces various legal battles, including a class-action lawsuit in the US for selling unregistered tokens and a lawsuit in the UK where a former employee alleges wrongful dismissal after reporting an unethical bribery incident.

As regulatory actions against centralized exchanges gain momentum, recent incidents involving KuCoin operating an unlicensed money-transmitting business in the US demonstrate the increasing scrutiny faced by cryptocurrency exchanges.

While detailed information on the French investigation is awaited, the situation does not bode well for Binance, signaling a challenging period ahead for the exchange.