Binance Faces Complaint in France over Social Media Marketing

Fazzaco learned that Binance​ is facing a criminal complaint filed by French crypto investors, charging the exchange with misleading commercial practice and promoting its service before it was officially registered in the country to do so.

Binance secured its registration from the Autorité des Marchés Financiers (AMF) to act as a digital financial service provider in France in May this year. Whereas, the complaint says that the crypto exchange marketed on social media platforms when its registration was still pending with the AMF.

Pursuant to a relevant law, unregistered digital financial services providers are not allowed to promote their activities in France.

Changpeng Zhao, Binance CEO, explained that Binance has not been promoting its offers in France before it was allowed to.

Reportedly, the crypto exchange has marketed itself globally, with the help of hundreds of volunteers across the world, dubbed "Binance Angels", who promote Binance to local crypto traders on social media.

Binance has not received any any notification relating to either criminal or civil proceedings, according to a Binance spokesperson.

Shortly before, Binance's auditor Mazars announced its departure from the crypto sector​. Then, the Securities and Exchange Commission (SEC) is stepping up scrutiny over audits the crypto companies are getting.