Binance France has restructured its ownership following a warning from the country’s Financial Markets Authority (AMF), resulting in new shareholders who now each own 50% of the company. This move was prompted by regulatory concerns over former CEO Changpeng Zhao’s involvement with the company amidst ongoing legal issues in the United States.

In a recent blog post, Binance France disclosed that the AMF had issued a warning in December, necessitating the change in ownership. The regulatory body insisted that Binance France address the complications arising from Zhao's legal entanglements with the U.S. Justice Department, the Commodity Futures Trading Commission (CFTC), and the Treasury’s Financial Crimes Enforcement Network. Consequently, Zhao had to relinquish his position as the beneficial owner of Binance France.

Zhao, who has already withdrawn from the company, pleaded guilty to charges in the U.S. in November and faces a four-month prison sentence, although he has yet to begin serving his term.

While Binance France did not disclose the identities of the new beneficiaries, the Pappers information service has identified them as Lihua He and Yulong Yan. Information about both individuals remains scarce. However, Binance's white paper refers to Yulong Yan as Allan Yan, the first product director and a co-founder of Bijie Tech, Zhao’s prior venture that provided software to cryptocurrency exchanges before being shut down in 2017. Lihua He is not mentioned in the white paper.

This ownership change is critical for Binance France to maintain its license under the Markets in Crypto-Assets (MiCA) regulations. A company licensed in one European Union country can extend this license to all 27 member states. Binance reportedly received AMF approval in May 2022 after operating illegally in the country since 2020. However, it has also faced scrutiny for potential Anti-Money Laundering violations.

In addition to regulatory challenges, Binance France has struggled to secure a banking partner after the CFTC filed a lawsuit against the company in March 2023. This period also saw the departure of Binance France’s executive director, Stéphanie Cabossioras, in October 2023, amid a wave of executive exits.

Binance's regulatory troubles extend beyond France. In June, the company was denied a virtual asset service provider license in the Netherlands, and its Belgian operations were shuttered by regulators later that month. These setbacks highlight the broader regulatory hurdles facing Binance as it navigates compliance across different jurisdictions.

The shift in ownership and ongoing regulatory adaptations underscore the dynamic and challenging landscape for cryptocurrency exchanges like Binance, which must balance growth ambitions with the evolving demands of global regulatory frameworks.