According to French media reports, French authorities are looking into Binance, the largest cryptocurrency exchange in the world.
Its anti-money laundering practices are the main subject of the investigation.
After failing to obtain a license from the Dutch central bank, the company announced its departure from the Netherlands.
Binance acknowledged in a statement that French authorities visited its offices last week and that it will comply.
"Last week, the appropriate authorities came to our location. As always, Binance was completely cooperative, and we upheld our commitments as a result. To maintain high standards, we keep collaborating closely with authorities and law enforcement on all ongoing compliance requirements, a company spokesperson said.
For both retail and institutional investors, cryptocurrencies have recently grown in popularity as a trading asset class.
Because cryptocurrency prices can fluctuate greatly in value, concerns have been raised about the risks involved.
In an effort to make cryptocurrency exchanges more transparent, regulators from around the world have stepped up their pressure on them.
Both in the United States and in Europe, Binance is having difficulties.
Two financial watchdogs in the US, the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission, are suing the exchange on the grounds that it has been operating illegally and disregarding laws enacted to protect investors.
Additionally, the company's founder Changpeng Zhao and the SEC have been charged with mismanaging client funds.
Binance has defended its business methods. A total asset freeze is being avoided by the company's US operations through current discussions with the SEC.
If a US judge approves the regulator's request for an asset freezing order, Binance has threatened that its business will "grind to a halt.".
According to the Financial Conduct Authority's website, Binance Markets Limited, the company's unit in the UK, was removed from the FCA's register on May 30 at the company's request. This left Binance without any authorised entities in the UK.
