Binance France Undergoes Ownership Reshuffle Following Regulatory Pressure
Summary:
Binance France has redistributed 100% ownership equitably among new shareholders due to a warning issued by France's Financial Markets Authority (AMF) in response to a conflict involving the original owner and various U.S. regulatory agencies. Bel believed to be from the original Binance team, Lihua He and Yulong Yan are the new owners. Following charges in the U.S, the former CEO, Changpeng Zhao, quit Binance. Despite challenges including former legal issues, lack of bank partnerships, and license denials in other countries, Binance France previously earned approval from AMF, following two years of unlicensed operation.
Binance France has undergone a change in its shareholding structure, with full ownership now divided equally among new stakeholders. This alteration was necessitated following a cautionary notice issued to the firm by France's Financial Markets Authority (AMF) in December. As the AMF detailed in an online post, it directed Binance France to address the issue triggered by a conflict involving the original owner and agencies of the U.S. Government: The Department of Justice, the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network of the U.S. Treasury. Essentially, Changpeng Zhao, the former Binance CEO, was no longer permitted to remain an owner of the company. The post clarified that Zhao had already stepped down from his role. After pleading guilty to charges in the U.S. last November, he was handed a four-month prison term, which he hasn't started serving as of yet.
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Binance France didn't disclose the identities of the latest owners but mentioned they were part of the original Binance team. As per Pappers information service, the new owners are Lihua He and Yulong Yan. Not much is known about either of these individuals. The Binance white paper presumably refers to Yan as Allan Yan, the inaugural product director. Yan also co-founded Bijie Tech, a firm Zhao launched prior to Binance to offer software solutions for cryptocurrency exchanges, which was eventually closed in 2017. The document does not mention Lihua He.
Source: The Big Whale
Under the regulations of the Markets in Crypto-Assets (MiCA), a license granted in one European Union nation can be extended to all 27 member nations. Reportedly, Binance received a green light from AMF in May 2022, after operating unlawfully in the nation since 2020. The company was also purportedly under an Anti-Money Laundering investigation ahead of Zhao's legal challenges in the U.S.
Binance France experienced difficulties securing a banking partner in the country post-CFTC's lawsuit against the company in March 2023. Stéphanie Cabossioras, Binance France’s executive director, was among the wave of executives who exited the company in October 2023. Binance had its digital asset service provider license application denied in the Netherlands in June, while its Belgian operations were shuttered by the regulatory authorities that same month.
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Published At
5/29/2024 12:06:30 AM
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