Indeed, the iconic trading platform Binance is forced to restructure in France.
The former CEO of Binance, Changpeng Zhao, can no longer be the leader of the famous exchange if it wishes to operate in the country.
Following this situation, Binance France has taken the initiative to appoint new shareholders to head the company.
These new shareholders, who now hold all of the company’s capital, have the task of turning the company around and ensuring its sustainability in France.
This restructuring follows the warning from the Autorité des marchés financiers (AMF) last December.
A new team without Zhao
It was imminent to take measures in response to the issues that arose between CZ and the American Department of Justice, the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network of the Treasury. This decision follows the AMF’s notice regarding Binance France.
Indeed, the former CEO of Binance, following his conviction, could no longer own the company.
The message indicated that Mr. Zhao had already left the company. Last November, he pleaded guilty to the American charges. At that time, he was sentenced to four months in prison in the United States.
Binance France has not disclosed the names of the new beneficiaries. However, the subsidiary indicated that they were both members of Binance’s founding team. According to some experts, it could be Lihua He and Yulong Yan.
Yan was the first product director. He was also co-founder of Bijie Tech, the crypto software company created by Zhao. The latter, based in Shanghai, was closed in 2017.
This new development marks a major turning point for Binance France. It remains to be seen how the platform’s users will welcome this change and what the repercussions will be on its operations in France.
A desire to normalize
Under the regulation on crypto-asset markets, or MiCA, a company holding a license in a country of the European Union can use it in the 27 member states.
Binance would have received AMF approval in May 2022, after operating illegally in the country since 2020.
The company was also reportedly under investigation for violating anti-money laundering rules before Mr. Zhao was indicted in the United States.
Binance France has also had difficulty finding a banking partner in France. The CFTC had filed a lawsuit against the company in March 2023.
Stéphanie Cabossioras, executive director of Binance France, then joined a wave of executives who left the company in October 2023.
Furthermore, Binance was denied a virtual asset service provider license in the Netherlands last June. Its activities in Belgium were closed by regulators later that same month.
A case to follow very closely!
BTCC
- More than 12 years in the trading market
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