Regulation
Post-Zhao Era: Binance France Swaps Ownership Amid Regulatory Pressure
Binance France has undergone a significant restructuring as it aims to ensure compliance with European Union regulatory standards. The decision, announced today (Tuesday) by the company, resulted in the replacement of co-founder Changpeng Zhao with two new shareholders.
The move comes amid efforts to safeguard Binance’s operations in France, the EU’s second-largest economy, where regulatory frameworks dictate that a company’s majority shareholder must not have a criminal record. Zhao, who previously held 100% ownership of Binance France, pleaded guilty to violating US banking laws in November.
In compliance According to French regulations, the new shareholders of Binance France are identified as Yulong Yan and Lihua He, each with a 50% stake. Yan, also known as Allan Yan, is a familiar figure in the cryptocurrency sphere, having been associated with the founding team of Binance
and previously served as co-founder and director of product at Bijie Tech, a now-defunct Chinese foreign exchange services company.
On the other hand, He’s background is less transparent and is not mentioned in Binance’s original whitepaper published in 2017. Binance declined to provide further details about this shareholder, including whether Zhao received compensation for the sale of his shares.
Evolution in compliance and leadership
The shareholder reshuffle reflects Binance’s broader efforts to emerge from the Zhao era, which culminated last year in legal repercussions for the company and its former CEO. Following a guilty plea for facilitating illicit transactions, Binance incurred a substantial fine and pledged to implement stringent anti-trust policies.money laundry measures, along with a change of leadership.
Richard Teng, former regulator of the Central Bank of Singapore, took over as CEO at the end of 2023. The ownership restructuring comes as part of Binance’s broader “global restructuring project” underway this year, as stated in a recent post on the company blog.
In response to regulatory pressures, Binance France has taken steps to align with the regulatory landscape, particularly in anticipation of the Regulation of Cryptocurrency Markets (MiCA). MiCA is set to introduce comprehensive regulatory standards for digital asset service providers across the EU, with implications for licensing and operational frameworks.
Binance France has undergone a significant restructuring as it aims to ensure compliance with European Union regulatory standards. The decision, announced today (Tuesday) by the company, resulted in the replacement of co-founder Changpeng Zhao with two new shareholders.
The move comes amid efforts to safeguard Binance’s operations in France, the EU’s second-largest economy, where regulatory frameworks dictate that a company’s majority shareholder must not have a criminal record. Zhao, who previously held 100% ownership of Binance France, pleaded guilty to violating US banking laws in November.
In compliance According to French regulations, the new shareholders of Binance France are identified as Yulong Yan and Lihua He, each with a 50% stake. Yan, also known as Allan Yan, is a familiar figure in the cryptocurrency sphere, having been associated with the founding team of Binance
and previously served as co-founder and director of product at Bijie Tech, a now-defunct Chinese foreign exchange services company.
On the other hand, He’s background is less transparent and is not mentioned in Binance’s original whitepaper published in 2017. Binance declined to provide further details about this shareholder, including whether Zhao received compensation for the sale of his shares.
Evolution in compliance and leadership
The shareholder reshuffle reflects Binance’s broader efforts to emerge from the Zhao era, which culminated last year in legal repercussions for the company and its former CEO. Following a guilty plea for facilitating illicit transactions, Binance incurred a substantial fine and pledged to implement stringent anti-trust policies.money laundry measures, along with a change of leadership.
Richard Teng, former regulator of the Central Bank of Singapore, took over as CEO at the end of 2023. The ownership restructuring comes as part of Binance’s broader “global restructuring project” underway this year, as stated in a recent post on the company blog.
In response to regulatory pressures, Binance France has taken steps to align with the regulatory landscape, particularly in anticipation of the Regulation of Cryptocurrency Markets (MiCA). MiCA is set to introduce comprehensive regulatory standards for digital asset service providers across the EU, with implications for licensing and operational frameworks.