According to reports, the Liechtenstein Financial Markets Authority (FMA) has temporarily withdrawn a Alleged application by Binance CEO Changpeng Zhao to be a major shareholder in a national bank in crisis.
According to the Swiss financial media In the Paradeplatz on August 10th the regulator declined the alleged request and also declined to allow an extension to seek fresh opinion from experts who could work to secure the agreement.
In November 2019, the Zurich business lawyer, Wolfram Kuoniwould have turned to the shareholders of Union Bank AG and claimed:
“The FMA will probably accept Binance as a shareholder. Since then, however [Union Bank] So far he has not complied with the order [de la FMA] With regard to equity, the FMA has made it clear that Binance must apply for approval as a shareholder and pay the amount of 15 million francs (15.17 million US dollars) to the trust account for a later capital increase by the end of the year November ” .
For his part, Union Bank was particularly involved, in serious financial and legal trouble. One of his first sponsors, the Ukrainian businessman Konstantyn Zhevago, Since December 2019 he has been on a list of people who are wanted internationally for suspected fraud and money laundering.
Looking for new shareholders to save the future of the institute, Kuomi was hoping to restart Union Bank AG as a platform for cryptocurrency clients.
In private correspondence with Cointelegraph, A Binance representative stated, “Binance has not attempted to include CZ (Changpeng Zhao) on the board.”
The representative added “Binance was not rejected by the Liechtenstein Financial Marketing Authority (FMA), as indicated by an application by Union Bank to include Binance as the main shareholder.”
Before, Wei Zhou, Binance CFO, categorically denied the exchange’s alleged application to become a shareholderand said it was inaccurate.
An official statement released yesterday by Union Bank AG says that at a general meeting on August 7th “The shareholders of Union Bank AG have decided to voluntarily liquidate the bank.”
The reason for the liquidation was Failure by the bank to comply with the requirements of the European Capital Adequacy Regulation.
According to the statement, The institute did not meet these requirements as no shareholder could be found who could have brought in the necessary funds and who was acceptable to the FMA:
“Over the past few months, the Board of Directors has intensively examined various options that would have enabled the business to continue under a new major shareholder and with a significantly higher capital base. It was not possible to renew the shareholder group, although it was held in intensive negotiations with interest groups, some of which have also gone through the regulatory approval process. “
In response to previous reports of the alleged deal, Binance’s CFO said at the time that the exchange “I would be open to a partnership with Union Bank and its new investors.” Binance is committed to adding secure and reliable channels to drive the adoption of crypto around the world. “
Today, Binance’s comment seems to be maintaining a clear line between any initiative allegedly bringing in CZ as a major shareholder and the exchange itself.
In today’s report by Paradeplatz The alleged attempt according to the Czech Republic is referred to as the “Kuoni’s Last Chance” to save the bank.
The deal was reportedly facing a major regulatory rollbackas reported CZ had intended to provide the funds by converting its illiquid cryptocurrency holdings into Swiss francs through a complex process that included establishing a new entity called the CL1 Foundation.
The regulator’s decision to reject the alleged application was based on the conclusion that Five of the five criteria for serious banking were not met.
At this point in time, the FMA has not responded to Cointelegraph’s request for a statement.