Ownership of Binance France Changes Hands in Post-Zhao Era Amid Regulatory Challenges | Finance Magnates
Binance France has recently undergone a significant restructuring to ensure compliance with regulatory standards in the European Union. The company announced today that Co-Founder Changpeng Zhao has been replaced by two new shareholders.
This decision was made in light of efforts to protect Binance’s operations in France, the second-largest economy in the EU. Regulatory frameworks in France require that the majority shareholder of a company does not have a criminal record. Zhao, who previously owned 100% of Binance France, pleaded guilty to violating US banking laws in November.
To comply with French regulations, the new shareholders of Binance France are Yulong Yan and Lihua He, each holding a 50% stake. Yan, also known as Allan Yan, has a background in the cryptocurrency industry and was part of the founding team of Binance. He previously served as a Co-Founder and Product Director at Bijie Tech, a defunct Chinese exchange services company.
On the other hand, He’s background is less clear, with no mention in the original Binance whitepaper from 2017. Binance has not provided additional information about this shareholder, including whether Zhao was compensated for giving up his shares.
Evolution in Compliance and Leadership
The reshuffling of shareholders is part of Binance’s broader effort to move away from the Zhao era, which faced legal consequences for the company and its former CEO last year. In response to a guilty plea for facilitating illicit transactions, Binance received a significant fine and committed to implementing strict anti-money laundering measures, as well as a change in leadership.
Richard Teng, a former regulator with the Singapore Central Bank, took over as CEO in late 2023. The ownership restructuring is part of Binance’s larger “global restructuring project” for this year, as outlined in a recent company blog post.
In anticipation of the Markets in Crypto-Assets regulation (MiCA), Binance France has taken steps to align with the regulatory landscape. MiCA will introduce comprehensive regulatory standards for digital asset service providers across the EU, impacting licensing and operational frameworks.
Source link
#PostZhao #Era #Binance #France #Swaps #Ownership #Regulatory #Pressures #Finance #Magnates
