<p class="MsoNormal">A group of French investors who were
previously clients of Binance has filed a complaint against the top cryptocurrency
exchange for allegedly illegally promoting its digital asset services in France between December 19, 2020, and
May 4, 2022. The clients alleged that this was before
the company was granted permission from the country’s financial markets regulator to
offer digital asset services in the country. </p><p class="MsoNormal">Binance Facing Accusations of Misleading Commercial Practice</p><p class="MsoNormal">Lawyers involved in the case told
Reuters that the plaintiffs accused Binance of having a “misleading commercial
practice.” According to local media Mediapart,
the investors claimed that they lost over €2.4 million in the aftermath of <a href="https://www.financemagnates.com/cryptocurrency/was-terra-luna-death-spiral-a-result-of-an-inside-job/" target="_blank" rel="follow">the
TerraUSD/LUNA collapse</a>, adding that the company promoted the token as being backed
by the US dollar.</p><p class="MsoNormal">Finance Magnates reported the French
Financial Markets Authority (AMF) gave Binance <a href="https://www.financemagnates.com/cryptocurrency/regulation/binance-gets-green-light-from-french-regulators/" target="_blank" rel="follow">the go-ahead</a> to
offer digital asset services in the country in May. </p><p>Check out this recent Finance Magnates London Summit 2022 session on how the market structure of the crypto industry is changing.</p><p class="MsoNormal">Binance Responds to Illegal Promotion
Claims</p><p class="MsoNormal">In <a href="https://www-binance-com.translate.goog/fr/blog/all/nos-r%C3%A9ponses-en-toute-transparence-8858410130922881812?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en-GB" target="_blank" rel="follow">a blog post</a>,
Binance shared responses it gave to Mediapart with regard to the complaint. The
exchange noted that it did not carry out any promotional communication in
France during the said period.</p><p class="MsoNormal">Responding to the question on its
use of a Telegram channel named Binance French to share
posts about its activities, the company said it “did not promote in France
before being allowed to do so," adding that "Telegram groups are global community forums,
which any Telegram user can create or join voluntarily.”</p><p class="MsoNormal">Meanwhile, the company has continued to
make efforts to establish its presence in Europe. Finance Magnates reported that
the exchange <a href="https://www.financemagnates.com/cryptocurrency/after-frances-nod-binance-faces-germany-to-deepen-ties-in-europe/" target="_blank" rel="follow">initiated licensing discussion</a> with Germany’s Federal Financial Supervisory Authority (BaFin)
following its digital asset services provider registration in France. </p><p class="MsoNormal">Furthermore, in May, Binance <a href="https://www.financemagnates.com/cryptocurrency/regulation/binance-gets-green-light-from-italy-regulators/" target="_blank" rel="follow">got the green light</a> from Italy’s financial markets regulator, Organismo Agenti e
Mediatori, to offer its cryptocurrency services in the country. Later in June,
the company <a href="https://www.financemagnates.com/cryptocurrency/news/binance-obtains-vasp-registration-in-spain/" target="_blank" rel="follow">obtained</a> the
same permission in Spain.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
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