🔥 France Could Determine Binance's Fate in Europe
posted 30 Apr 2024
Cryptocurrency exchange Binance faces the risk of losing access to the European Union market if French regulators reject the company's application for registration under the new MiCa legislation. A major reason for this could be that Changpeng Zhao (CZ) is the sole owner of the French branch, holding 100% of its shares.
Should the French Financial Markets Authority (AMF) decide against engaging with a potentially convicted shareholder, it could trigger a domino effect, with other EU countries also rejecting Binance's applications. To maintain the crypto exchange's presence in the European market, CZ might need to dilute or sell his stake.
If you have a criminal conviction, there is a high risk of having your approval withdrawn. This is basic French regulation,remarked lawyer O'Rorke.
Previously, we reported that U.S. authorities are considering stricter penalties for Changpeng Zhao, despite his cooperation with the investigation. Rather than the initially negotiated 18 months of jail and a $50 million fine, prosecutors are now seeking 36 months in prison and a similar fine.
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