• A lawsuit for violation of French law hits Binance France and Binance Holdings Ltd. 
  • The lawsuit alleges that the exchange platform violated the law by advertising and distributing crypto services before receiving registration. 
  • French investors allege that Binance France engaged in misleading commercial practices and fraudulent concealment. 

Binance France and its parent company are being slammed with a lawsuit by 15 French investors who allege the exchange of misleading commercial practices. The French local media reported the complaint that was filed on December 14. Binance started advertising its crypto services before receiving its registration from France’s financial regulator. 

Also read: Binance auditor Mazars suspends proof-of-reserves services for all crypto exchanges, here’s what this means

Binance France allegedly violated French law, advertised crypto services before obtaining license

Binance France and its parent company Binance Holdings Limited are being sued by 15 investors in France, according to local media reports. In a complaint filed on December 14, plaintiffs claim that Binance violated French laws by advertising and distributing crypto services before receiving registration from the country's authorities. 

France's financial market regulator, the Autorité des marchés financiers, has granted Binance a license as a digital asset provider in May 2022. The license allowed Binance to offer crypto trading and custody services. The complaint details that the cryptocurrency exchange platform started advertising on social media before receiving the license. A Telegram channel dubbed Binance French shared details of services provided by the firm. 

The investors claim that they lost €2.4 million to the collapse of algorithmic stablecoin USDT since the trading firm advertised it as a USD-backed token. 

Binance France responds to €2.4 million lawsuit

The world’s largest exchange by trade volume is known for its transparency. The company responded to questions on the case and argued that no promotional content was shared in France prior to receiving the license. The exchange noted that it included market risk warnings for all its crypto products and addressed Terra’s stablecoin advertisement concerns. 

The France-based platform argues that Telegram groups are community forums and can be created by users voluntarily. Therefore the exchange did not engage in promotional activities ahead of the scheduled time. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Prediction: BTC traders in dire need of a realistic price target

Bitcoin Price Prediction: BTC traders in dire need of a realistic price target

Bitcoin (BTC) price has advanced substantially in the first weeks of the year as global markets kept deaf, dumb and blind to the warnings of the central bankers that with the new year, all problems for 2023 will be suddenly erased. Inflation will remain a big topic for 2023, as central bankers might be right that inflation is nowhere near where it needs to be.

More Bitcoin News

Ripple Price Prediction: XRP guaranteed for fourth weekly positive close, but profit target is too far

Ripple Price Prediction: XRP guaranteed for fourth weekly positive close, but profit target is too far

Ripple (XRP) price is set to gain ground above the 200-day Simple Moving Average (SMA) in a repetition pattern as seen last week and the week before, where bulls were able to each time consolidate above a key pivotal or technical level.

More Ripple News

Apecoin Price Prediction: APE bulls are nearing a difficult hurdle that might be too high to jump

Apecoin Price Prediction: APE bulls are nearing a difficult hurdle that might be too high to jump

Apecoin (APE) price is having one of its best weeks for the year as bulls are pushing price action firmly higher. The risk is that with the several central banks coming out next week, some hawkish comments could trigger a massive headwind.

More Apecoin News

Hedera Price Prediction: HBAR missed the opportunity to reach that target before the fade kicked in

Hedera Price Prediction: HBAR missed the opportunity to reach that target before the fade kicked in

Hedera (HBAR) price has been shooting for the starts but looks to be dropping like a stone now. Just like Icarus, who flew too close to the sun, this time, Hedera came just not close enough to the projected price target for this rally.

More Hedera News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP