- Binance France has replaced Zhao with new shareholders, Yulong Yan and Lihua He.
- Regulatory compliance prompted the shareholder change to keep operational rights.
- The move aligns Binance France with local laws, ensuring future growth under MiCA.
Binance France undergoes a significant ownership reshuffle to comply with regulatory requirements and ensure future growth under MiCA.
Ownership Restructure in Response to Regulatory Hurdles
Binance France, the European arm of the world’s largest cryptocurrency exchange, has undergone a significant ownership reshuffle in response to regulatory hurdles faced by its founder, Changpeng Zhao. Previously the sole owner of Binance France, Zhao acknowledged violating US banking regulations. French law prohibits companies from having majority shareholders with criminal records.
New Shareholders: Yulong Yan and Lihua He
To ensure continued operations in France and the broader European Union (EU), Binance France has brought in Yulong Yan and Lihua He as new shareholders, replacing Zhao. This strategic decision mitigates potential legal risks associated with Zhao’s past actions, especially as new regulations are set to take effect in the EU.
Public Filings and Stake Distribution
Public filings reveal that Yan and He each hold a 50% stake in Binance France. Yan, also known as Allan Yan, was a key contributor to the initial Binance whitepaper and co-founded Bijie Tech, a Chinese cryptocurrency exchange, with Zhao. Incidentally, Bijie Tech was shut down by the Chinese government in 2017.
Unclear Role of Lihua He
The role of Lihua He, who was not mentioned in the original Binance whitepaper, remains unclear. Binance has not yet responded to inquiries regarding He’s background or whether Zhao received any compensation for relinquishing his shares.
Broader Reorganization Efforts
The ownership restructuring marks Binance’s attempt to move beyond a tumultuous period in November 2023. Following its admission of violating US banking regulations, Binance agreed to implement compliance measures and paid a hefty $4.3 billion fine. Richard Teng, a former Singaporean central bank regulator, assumed the CEO position in late 2023.
Adhering to Regional Regulations
This ownership change in France is a key component of a broader reorganization effort undertaken by Binance this year. The company asserts that these adjustments are necessary to adhere to regional regulations governing digital asset service providers.
Conclusion
Binance France’s strategic ownership restructuring is a proactive measure to align with regulatory requirements and ensure sustainable growth under the new MiCA regulations. By bringing in new shareholders, Binance aims to mitigate legal risks and continue its operations seamlessly within the European market.
