Liechtenstein regulator blocks deal between Binance CEO Changpeng Zhao and Union Bank

The Liechtenstein Financial Market Authority (FMA) declined Union Bank’s bid to sell a controlling stake to Binance CEO Changpeng Zhao, according to The Block, citing a local publication.

Union Bank had originally planned to relaunch the business as a crypto-banking platform following recent financial and legal troubles. As of writing, the company is undergoing liquidation.

Zhao’s investments would have helped save the bank from closure. According to the publication, he planned to execute the deal in digital currency via the CL1 Foundation, which influenced the regulator’s decision.

News of Binance’s plans to acquire Union Bank emerged at the end of last year. Then the exchange’s chief financial officer Wei Zhou denied the information, calling it inaccurate.

UPDATE

In a statement to CoinDesk, a Binance spokesperson said the exchange did not intend to invest in Union Bank or push Zhao onto the board of directors, and that the FMA did not reject anything. Whether the response concerns Zhao’s personal plans or the exchange’s plans remains unclear.

Earlier this year, Malta’s financial regulator said Binance did not have a licence to operate in their jurisdiction.

Find out how the exchange conceals its legal structure from regulators and users in ForkLog’s feature.

Subscribe to ForkLog news on Facebook!