Binance’s French division, Binance France, has undergone a change in majority shareholders to adhere to French rules, which prohibit companies from having criminal shareholders. This move aims to ensure that Binance can continue operating in France, the second-largest economy in the European Union.
As per information from Pappers, the new majority shareholders of Binance France are Yulong Yan and Lihua He, each owning 50% of the shares. Lihua He is reportedly a former Chief Product Officer at Binance.
Official representatives of Binance did not disclose details about the change in ownership. However, they stated that the restructuring of Binance France’s share and group structure was initiated in response to a formal notification from the Authority for Financial Markets (AMF) to comply with local regulations and obligations.
According to Binance, the new shareholders, Yulong Yan and Lihua He, are both co-founding members of the Binance team, with no history of involvement in any past issues. Each of them holds a 50% stake in Binance France. The company assured that this change will not impact the daily operations of Binance France or its users.
In December 2023, the AMF informed Binance’s management that Changpeng Zhao, Binance’s founder, could no longer be the owner of the company due to charges brought against him by the U.S. Department of Justice and the U.S. Commodity Futures Trading Commission.
Binance France has faced scrutiny from French regulators since February 2022, with allegations of providing illegal crypto services and failing to comply with anti-money laundering (AML) obligations. The charges relate to its activities as an unregistered digital asset service provider and several instances of aggravated money laundering.
In response to these allegations, Binance France’s Branch Manager, David Prinçay, emphasized the company’s compliance with local legislation and its cooperation with authorities during on-site inspections.
Changpeng Zhao, the head of Binance, has faced legal challenges, including a guilty plea to money laundering charges in the United States. Despite these issues, Binance remains the world’s largest cryptocurrency exchange by trading volume, with Zhao maintaining his position as the wealthiest individual in the crypto industry.
Binance’s international operations have also faced regulatory hurdles in various countries, including Nigeria, the Philippines, and Russia. These challenges highlight the ongoing struggle between cryptocurrency exchanges and regulators worldwide.