Binance France Ownership Restructuring and Regulatory Challenges
The ownership of Binance France has experienced a significant reshuffle, with new shareholders now holding an equal 100% stake in the company. This change was instigated by a warning from the French Financial Markets Authority (AMF) sent to the company in December.
In response to the directives from the AMF, Binance France had to address issues arising from disputes with regulatory bodies like the United States Justice Department, Commodity Futures Trading Commission (CFTC), and the Treasury's Financial Crimes Enforcement Network. This led to the former CEO, Changpeng Zhao, no longer being permitted to have ownership stakes in the company.
Reports indicate that Zhao has already distanced himself from the company, having admitted to U.S. charges in November. He is awaiting the commencement of his four-month prison sentence in the U.S.
While the new beneficiaries of Binance France have not been publicly disclosed, it is known that they are members of the company's founding team named Lihua He and Yulong Yan according to the Pappers information service. However, there is limited public information available about these individuals.
Yulong Yan, also identified as Allan Yan in the Binance white paper, is recognized as the first product director. Yan was previously associated with Bijie Tech, a company founded by Zhao to provide software for cryptocurrency exchanges. Notably, the Shanghai-based company was closed in 2017. The role of Lihua He remains undisclosed in official documents.
Under the Markets in Crypto-Assets (MiCA) regulations, a company licensed in one EU country can extend its license to all 27 member states. Binance reportedly obtained approval from the AMF in May 2022 after operating without authorization since 2020. The company was under investigation for anti-money laundering violations prior to Zhao's legal issues in the U.S.
Binance France faced challenges in securing a banking partner in France following legal actions by the CFTC in March 2023. In October 2023, Stéphanie Cabossioras, the executive director, resigned, joining the list of departing executives amid tumultuous times.
In further regulatory setbacks, Binance was denied a virtual asset service provider license in the Netherlands and had to close its operations in Belgium due to regulatory constraints. The restructuring of ownership and ongoing regulatory hurdles pose significant challenges for Binance France in the evolving landscape of cryptocurrency exchanges.
