Lawyer: CZ's ruling may affect Binance's EU business

According to BlockBeats, on April 30, DL News reported that CZ, the former CEO of Binance who has now been sentenced by a US court, is the sole shareholder of Binance's French subsidiary, which may affect Binance's future operations in the EU. The EU's new cryptocurrency regulatory law, the Crypto Asset Market Regulation (MiCA), is about to take effect. Binance France is currently registered with the French Financial Market Authority (AMF), but if the AMF refuses to issue it a MiCA license due to CZ's criminal record, Binance's license application in other EU countries may also be rejected. Lawyer William O'Rorke said that CZ as the sole shareholder may lead to the revocation of Binance France's registration, and AMF needs to propose solutions, such as changing CZ's shareholding ratio. Currently, the Paris Public Prosecutor's Office has launched a money laundering investigation into Binance, and a group of investors have also sued Binance for illegally marketing to French consumers. These legal issues may hinder Binance from obtaining a MiCA license. However, the rectification of Binance by US regulators may prompt its European subsidiaries to improve compliance. Binance has registered subsidiaries in many European countries, but there have been several cases of deregistration or being ordered to stop business. O'Rorke believes that the prosecution by the US Department of Justice may mean the end of Binance, or it may be the beginning of a new starting point for compliance.