Liechtenstein's Financial Market Authority has reportedly pulled the plug on an alleged application to bring Binance CEO Changpeng Zhao on as a major shareholder in a distressed domestic bank.
"The FMA is likely to accept Binance as shareholder. However, given that [Union Bank] as of now in default of the [FMA] order regarding own funds, FMA has made it clear that Binance must file to application for approval as shareholder and pay in amount of CHF 15 million to escrow account for a later capital increase by the end of November."
The representative added that "Binance was not rejected by the Liechtenstein Financial Marketing Authority as reported for an 'application for Union Bank to bring on Binance as a major shareholder.'".
Previously, Binance's chief financial officer Wei Zhou had categorically denied the rumored application by the exchange to become a shareholder, saying it was inaccurate.
An official statement published yesterday by Union Bank AG indicates that at an Aug. 7 general meeting, "The shareholders of Union Bank AG resolved to voluntarily liquidate the bank."
"In recent months, the Board of Directors has intensively reviewed various options that would have permitted the continuation of operational banking activities under a new anchor shareholder and with a significantly higher capital base. It was not possible to renew the group of shareholders, although intensive negotiations were held with interested parties, some of which have also gone through the regulatory approval process."
"Responding to earlier reports into the alleged deal, Binance's CFO said at the time that the exchange"would be open to exploring a partnership with Union Bank and its new investors.
Today's comment from Binance appears to uphold a hard and fast line between any rumored initiative to bring on CZ as an anchor shareholder and the exchange itself.
Inside Paradeplatz's report today characterized the purportedly attempted deal with CZ as having been Kuoni's "last remaining chance" to save the bank.
The FMA's decision to reject the alleged application was drawn on its conclusion that five out of five criteria for reputable bank management had not been met.
Report: Regulators Reject CZ's Application to Become Shareholder in Troubled Bank
Published on Aug 11, 2020
by Cointele | Published on Coinage
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