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France opens a criminal probe into Binance, Utah and Arizona move towards investing state funds in Bitcoin, and the Czech central bank also sees a role for Bitcoin in its portfolio.
Prosecutors in France say they are investigating crypto exchange Binance in relation to potential tax fraud, money laundering, drug trafficking and illegal marketing offences.
On Tuesday (January 28), the National Jurisdiction for the Fight against Organized Crime (JUNALCO) that it has opened a wide-ranging investigation into Binance.
Describing the potential offences as aggravated denoting a higher severity and potentially higher penalties the office said the move is part of its ongoing efforts to prevent digital asset-based money laundering.
Laure Beccuau, public prosecutor, said the allegations relate to activities that took place between 2019 and 2024, not only in France but also in other EU jurisdictions.
At this stage, the investigation shows that Binance allegedly failed in its vigilance obligations in the fight against money laundering and the financing of terrorism, she said.
The investigation focuses in particular on the manner in which Binance met or failed to meet its know your customer (KYC) obligations, thus making it likely to have contributed to the habitual laundering of money from various offences, in particular drug trafficking and tax fraud.
Beccuau said the investigation began following complaints from Binance users who claimed that they had lost money due to false or misleading marketing from the exchange.
These users alleged that Binance had communicated promotional and marketing material in France prior to 2022 before the company was registered with or approved by the Financial Markets Authority (AMF).
Beccuau said that Binances use of influencers and other social media campaigns during this time took place without the knowledge of the AMF and in violation of applicable law.
Under the direction of an investigating magistrate, the probe will now aim to clarify the facts pertaining to the allegations and the degree of complicity of Binances managers.
In response, Binance said it denies the allegations and will vigorously defend itself if charges are brought.
It also described the allegations as years old and said it was disappointed with the offices decision to open an investigation.
The allegations are similar to those that Binance has faced in other markets.
In November 2023, ascovered by 蹤獲鱉鱉, the US Department of Justice (DOJ) announced a $4.3bn criminal settlement with Binance the largest corporate resolution in US history.
The charges included sanctions violations, anti-money laundering (AML) failures under the Bank Secrecy Act (BSA) and operating as an unregistered money services business (MSB).
As in France, some of the charges related to the laundering of drug money a use case of the platform that one Binance compliance executive had joked about internally.
In 2024, Binance was C$6m ($4m) in Canada for failing to register as a foreign money services business and failure to report transactions of C$10,000 ($7,000) or more.
And in India in 2023, Binance was INR188m $2.25m for failing to register as an AML reporting entity and comply with local AML laws.
Utah, Arizona Bitcoin bills make progress
Lawmakers in Utah and Arizona have voted to advance new bills that would allow the two states to invest public money into Bitcoin.
In Utah, the voted 8-1 to pass House Bill (HB) 230, also known as the Blockchain and Digital Innovation Amendments Bill.
The bill authorises the state treasurer to invest up to 5 percent of the funds held in state accounts in qualifying digital assets.
This includes any digital asset that has had a market cap of $500bn or more for the previous 12 months a threshold that is only currently met by Bitcoin. It also includes stablecoins, regardless of market cap.
Additionally, the state treasurer would be authorised to lend out or stake the digital assets held on behalf of the state.
Finally, state authorities would be barred from prohibiting or restricting a persons ability to self-custody digital assets or to use them to pay for goods or services.
Representative Jordan Teuscher (R), chief sponsor of the bill, that Utah was the 11th US state to introduce a bill of this kind, but will be the first to pass one.
啦堯梗泭, which focuses on the potential use of digital assets by the state retirement system, is much narrower in scope.
It would authorise the Arizona State Retirement System and Public Safety Personnel Retirement System to consider investing public money in Bitcoin exchange-traded funds (ETFs).
These agencies would also be asked to submit a report to lawmakers on the feasibility, risk and potential benefits of directing a portion of state retirement funds into digital assets.
The bill was passed by the Arizona State Senate Finance Committee in a 5-2 vote.
Czech central banker pitches national Bitcoin reserve
The governor of the Czech National Bank (CNB) has also pitched the idea of establishing a Bitcoin reserve using public funds.
Ale禳 Michl,, said the central bank is considering adding Bitcoin to its reserves due to its low correlation with other asset types.
It currently has zero correlation to bonds and is an interesting asset for a large portfolio, he said.
Right now, its only at the stage of analysis and discussion. The Bank Board decides, and no decision is imminent. Thoughtful analysis is needed.
On Thursday (January 30), he asked the bank to produce an assessment of Bitcoins potential role in the makeup of its reserves.
He also said the CNB will soon increase its gold holdings from 0 percent of its portfolio to 5 percent, and will invest 30 percent of its portfolio in equities.
