Wednesday, May 29, 2024 ▪
4
min reading ▪ acc
Binance France recently changed hands following a warning from the Financial Markets Authority (AMF). Former CEO Changpeng Zhao had to step down so the company could keep its French license.
After the AMF warning, there was a deep realignment on Binance France
Binance France, a subsidiary of the global crypto giant, recently underwent a major change of ownership. Indeed, this decision follows a warning issued by the AMF last December. The stock market watchdog has indicated that Changpeng Zhao, the former CEO of Binance, can no longer remain the company’s beneficial owner.
The action follows an investigation by the US Department of Justice, the Commodity Futures Trading Commission (CFTC) and the US Treasury Department’s Financial Crimes Enforcement Network. Mr. Zhao pleaded guilty to the charges in the United States in November and was sentenced to prison.
To meet AMF requirements and maintain its French license, Binance France had to find new shareholders. The company announced that the new owners now own 100% of the company equally.
The French branch did not publicly disclose the names of the new beneficiaries. However, the Pappers news service identified Lihua He and Yulong Yan as the new owners. Both of these individuals are founding members of Binance, with Yan also identified as Allan Yan, Binance’s first Chief Product Officer.
The regulatory path is strewn with pitfalls
The change of ownership takes place in a complex regulatory context for the stock market in Europe. The company received approval from the AMF in May 2022, allowing Binance France to operate legally in the country. vs
However, the AMF granted this approval after accusing Binance of violating anti-money laundering rules, even before Zhao was charged in the United States. According to the European Regulation on Markets in Crypto-assets (MiCA), this license would allow Binance to move its operations to the 27 member countries of the European Union.
After the CFTC filed a lawsuit against Binance in March 2023, the French subsidiary faced problems establishing local banking partnerships. This situation was further complicated by the departure of several executives in October 2023, including Stéphanie Cabossioras, CEO of Binance France.
In June 2023, Dutch authorities refused to grant Binance a license as a virtual asset provider. Later that month, Belgian regulators forced the exchange to suspend operations on their territory.
As the crypto sector experiences unprecedented regulatory acceptance, Binance will have to redouble its efforts to review its management and reassure the authorities. This change of owners in France seems to be the first step in that direction.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
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