Binance France, a subsidiary of the global cryptocurrency giant, has undergone a significant transformation in ownership following a warning from the Autorité des marchés financiers (AMF). This change was necessary for the company to maintain its French license, which was initially granted in May 2022. The AMF had previously accused Binance of violating anti-money laundering rules, and the company had to find new shareholders to comply with the regulatory requirements.

The change in ownership is a direct result of investigations conducted by the United States Department of Justice, the Commodity Futures Trading Commission (CFTC), and the Treasury Department’s Financial Crimes Enforcement Network. Changpeng Zhao, the former CEO of Binance, had to step down due to his guilty plea and subsequent prison sentence in the United States.

To comply with the AMF’s demands, Binance France has found new owners who hold 100% of the company in equal parts. Although the names of the new beneficiaries have not been publicly disclosed, the information service Pappers has identified Lihua He and Yulong Yan as the new owners. Both individuals are founding members of Binance, with Yan also being the first product director of the company.

The change in ownership comes amid a complex regulatory environment for the exchange in Europe. Binance France received approval from the AMF in May 2022, allowing it to operate legally in France. However, the company faced difficulties establishing local banking partnerships after the CFTC filed a lawsuit against Binance in March 2023. The departure of several senior executives in October 2023 further complicated the situation.

In June 2023, Dutch authorities refused to grant Binance a virtual asset service provider license, and Belgian regulators forced the exchange to suspend its activities in their territory. Despite the regulatory challenges, Binance will need to redouble its efforts to review its governance and reassure authorities. This change of owners in France seems to be a first step in that direction.