In an effort to comply with French regulations, the world’s largest crypto exchange platform Binance has extensively overhauled the governance of its French subsidiary. This far-reaching restructuring has forced emblematic co-founder Changpeng Zhao to hand over the reins to two new figures who are now majority shareholders.
Restructuring forced by CZ’s legal problems
Binance France, the hexagonal branch of the global crypto exchange giant, has just made a major strategic shift in its governance. As part of a vast “global restructuring” plan aimed at complying with local regulations, the platform had to part ways with its famous co-founder Changpeng Zhao to install two new majority shareholders.
This change of ownership comes on the heels of recent legal setbacks for CZ in the United States. Last November, the executive pleaded guilty to violations of U.S. banking laws. a criminal record. French regulations formally prohibit a convicted person from being a shareholder of a company.
Binance therefore decided to replace CZ by Yulong Yan and Lihua He, two members co-founders of the original team, who now hold a 50% stake in Binance France each. Although Yan or a co-founder the profile of He remains a mystery.
Regulatory compliance strategy in sight
This shareholder transition is part of a broader “global restructuring ” engaged by Binance to comply with the new framework regulatory framework. The imminent entry into force of the MiCA regulation will require platforms to obtain a license in a Member State in order to operate freely anywhere in the EU.
France, where Binance has invested heavily in recent years, represented a major strategic challenge. But convictions and investigations CZ were threatening the company’s chances of obtaining MiCA approval. Hence this restructuring aimed at restoring the company’s reputation.
While Binance is trying to comply with strict new crypto regulations, the forced departure of its co-founder clearly marks a turning point. The platform’s future on the French and European markets will depend on its ability to demonstrate good governance under this new leadership. While Changpeng Zhao’s sacrifice will have been painful, it may well be the necessary evil to enable Binance to establish a lasting foothold in this regulatory landscape of multiple opportunities.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
