Binance wants its place in Europe. International by nature, Binance is looking to establish itself in all the world’s major economic zones to popularize crypto and assert its dominance over the sector. But it’s not all smooth sailing, and the crypto exchange of Changpeng Zhao is faced with a series of difficulties, including legal proceedings, obtaining financial licenses and complying with regulations that are changing day by day. His move to Europe is a reflection of its expansion policy: slow, complicated, fraught with pitfalls and sometimes opaque, if some observers are to be believed. From Vilnius to London, via Valletta, we look back at Binance’s adventure on the European continent. Old Continent.
The Lithuanian adventure of Changpeng Zhao’s platform
Finding a country in which to set up shop was no easy task for the cryptos who had to go into exile far from the China for regulatory and political reasons. Malta seemed an interesting option for a while before falling through, as did the capital of United Kingdom which refused him an essential financial license to operate in the country. In search of a welcoming country to host his activities, he finally settled in Lithuania that Binance will settle. Clearly not his first choice, Vilnius offers access to the European market and will enable CZ to set up a local subsidiary: Bifinity.
But the arrival in the country soon raised a few questions, as according to a spokesman for the Bank of Lithuania who spoke in the press economic, « society is neither supervised nor authorized ». Immediate response from Simons MatthewsBinance spokesman:
« The company is not required to be licensed by the Bank of Lithuania because Bifinity does not hold, manage or collect customer funds or issue e-money. »
Bifinity mainly used to collect payments in euros, the company headed by Helen Haia close associate of CZ, doesn’t need a license to operate. But leaving aside the controversy surrounding Binance’s status in Lithuania, let’s see how this small country actually serves as an advanced base for the conquest of another, much more important country this time: France. United Kingdom. And to distance itself from the British regulator’s initial refusals, the firm used a method widely used in traditional finance, which consisted in making theacquisition of a regulated company.
This is how Helen Hai, then just promoted to the head of Bifinitywill announce an investment in Eqonexa Nasdaq-listed company with a licensed crypto custodian called Digivault.
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Binance conquers the UK by hook or by crook
But this three-ring billiard game was not to go as planned, as Eqonex was soon to make bankruptcy. And next, the company’s investors suspected Binance for wanting to use Eqonex to take advantage of Digivault without any real interest in the company’s previous activities. The case is currently before the U.S. District Court for the Southern District of Manhattan.
However, this attempt was not the first, since a few years earlier, the same Helen Hai had teamed up with a South African entrepreneur, Simon Dingleto create Binance Digital Limited and obtain a temporary license in the country. In the end, all this would also end up in court over a story of « misleading statements » which will put an end to this collaboration. Both parties are currently refusing to comment on the matter. At present, the CZ is still trying to gain a foothold in the Kingdom of Charles III, but fails irretrievably.
But the trouble continues for the crypto exchange, which finds itself under heavy fire from critics and the law. The SEC charges include commingling customer funds, funneling money into a personal CZ account and even buying a private jet. As for his presence in Lithuaniaa country known for its light regulatory approach, raises a number of questions. Anil KashyapECB advisor and university professor, asks a simple question: « if they are an honest company, why couldn’t they follow the registration process in other countries? ». Clearly accustomed to this kind of frontal attack, Binance’s charismatic CEO has become accustomed to letting his lawyers handle crises. On his side, gives the same answer over and over again: 4.
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