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Post-Zhao era: Binance France changes ownership amid regulatory pressures

Posted on by darion

Binance France has undergone significant restructuring to ensure compliance with regulatory standards in the European Union. The decision, revealed by the company today (Tuesday), was to replace co-founder Changpeng Zhao with two new shareholders.

The move comes as part of efforts to safeguard Binance’s operations in France, the EU’s second-largest economy, where the regulatory framework stipulates that the company’s majority shareholder cannot be punished. Zhao, who previously owned 100% of Binance France, pleaded guilty in November to violating U.S. banking law.

IN compatibility in accordance with French regulations, the new shareholders of Binance France are Yulong Yan and Lihua He, each holding 50% of the shares. Yan, also known as Allan Yan, is a well-known figure in the cryptocurrency sphere as he was associated with the Binance founding team and previously served as co-founder and chief product officer at Bijie Tech, a now-defunct Chinese exchange services company.

On the other hand, his past is less transparent, which is not mentioned in the original Binance document published in 2017. Binance declined to provide further details about this shareholder, including whether Zhao received compensation for giving up his shares.

Evolution in compliance and leadership

The shareholder reshuffle reflects Binance’s broader efforts to move on from the Zhao era, which culminated last year in legal ramifications for the company and its former CEO. Following its guilty plea for facilitating illegal transactions, Binance was fined a significant amount and committed to implementing stringentmoney laundering resources, with a change in leadership.

Richard Teng, a former regulator at the Central Bank of Singapore, took over as CEO in late 2023. As stated in a recent company blog post, the ownership restructuring is part of Binance’s larger “global restructuring project” ongoing this year.

In response to regulatory pressure, Binance France has taken steps to adapt to the regulatory environment, particularly in anticipation of the Cryptocurrency Markets Regulation (MiCA). MiCA is set to introduce comprehensive regulatory standards for digital asset service providers across the EU, which will impact licensing and operational frameworks.

Binance France has undergone significant restructuring to ensure compliance with regulatory standards in the European Union. The decision, revealed by the company today (Tuesday), was to replace co-founder Changpeng Zhao with two new shareholders.

The move comes as part of efforts to safeguard Binance’s operations in France, the EU’s second-largest economy, where the regulatory framework stipulates that the company’s majority shareholder cannot be punished. Zhao, who previously owned 100% of Binance France, pleaded guilty in November to violating U.S. banking law.

IN compatibility in accordance with French regulations, the new shareholders of Binance France are Yulong Yan and Lihua He, each holding 50% of the shares. Yan, also known as Allan Yan, is a well-known figure in the cryptocurrency sphere as he was associated with the Binance founding team and previously served as co-founder and chief product officer at Bijie Tech, a now-defunct Chinese currency exchange services company.

On the other hand, his past is less transparent, which is not mentioned in the original Binance document published in 2017. Binance declined to provide further details about this shareholder, including whether Zhao received compensation for giving up his shares.

The evolution of compliance and leadership

The shareholder reshuffle reflects Binance’s broader efforts to move on from the Zhao era, which culminated last year in legal ramifications for the company and its former CEO. Following its guilty plea for facilitating illegal transactions, Binance was fined a significant amount and committed to implementing stringentmoney laundering resources, with a change in leadership.

Richard Teng, a former regulator at the Central Bank of Singapore, took over as CEO in late 2023. As stated in a recent company blog post, the ownership restructuring is part of Binance’s larger “global restructuring project” ongoing this year.

In response to regulatory pressure, Binance France has taken steps to adapt to the regulatory environment, particularly in anticipation of the Cryptocurrency Markets Regulation (MiCA). MiCA is set to introduce comprehensive regulatory standards for digital asset service providers across the EU, which will impact licensing and operational frameworks.