👋 Goodbye CZ: Binance France Changes Hands to Survive AMF Scrutiny!
Binance France has recently changed ownership in response to a warning from the Autorité des marchés financiers (AMF). Former CEO Changpeng Zhao had to step down to allow the company to keep its French license.
Major Overhaul at Binance France Following AMF Warning
Binance France, the subsidiary of the global crypto giant, has undergone a significant ownership shift after the AMF issued a warning last December. The French stock market regulator declared that Changpeng Zhao, Binance's former CEO, could no longer remain the ultimate beneficial owner of the company.
This move follows investigations by the U.S. Department of Justice, the Commodity Futures Trading Commission (CFTC), and the Treasury Department’s Financial Crimes Enforcement Network. Zhao pled guilty to charges in the U.S. in November and received a prison sentence.
To comply with the AMF’s demands and retain its French license, Binance France had to bring in new shareholders. The company announced that these new owners now hold 100% of the company equally.
While Binance France has not publicly disclosed the new owners, the information service Pappers identified Lihua He and Yulong Yan as the new stakeholders. Yan, also known as Allan Yan, is a founding member and Binance’s first product director.
Navigating a Regulatory Maze
The change in ownership comes amid a challenging regulatory landscape for Binance in Europe. Binance France received AMF approval in May 2022, permitting it to operate legally in the country.
However, this approval came after accusations of anti-money laundering rule violations, even before Zhao’s indictment in the U.S. According to the European Union’s Markets in Crypto-Assets (MiCA) regulation, this license allows Binance to expand its operations across the 27 EU member countries.
The situation became more complicated when the CFTC filed a lawsuit against Binance in March 2023, leading to difficulties in establishing local banking partnerships for the French subsidiary. The departure of several senior executives in October 2023, including Stéphanie Cabossioras, the executive director of Binance France, further exacerbated the challenges.
In June 2023, Dutch authorities denied Binance a virtual asset service provider license, and later that month, Belgian regulators forced the exchange to suspend operations in their territory.
As the crypto sector faces increasing regulatory scrutiny, Binance must intensify efforts to review its governance and reassure authorities. This change in ownership in France appears to be a crucial first step in that direction.
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