Binance Denies Rumors It’s Acquiring Bankrupt Europe-Based Union Bank AG
Crypto exchange Binance said in an official announcement that the media reports claiming it’s buying bankrupt Liechtenstein-based Union Bank AG aren’t true.
This is what Wei Zhou, Binance CFO, had to say about the news:
“The reports that Binance is investing into Liechtenstein Union Bank or has applied with the Financial Market Authority to become a shareholder of the Bank are inaccurate.”
The rumors appeared earlier today when the Swiss financial news outlet Inside Paradeplatz said Union Bank AG, Binance and Financial Market Authority (FMA) of Liechtenstein representatives have met and that Binance signed a commitment with the bank.
Letter Saying the FMA Is Likely to Accept Binance as Shareholder
The Inside Paradeplatz report also cited a letter from November 19, a letter that was addressed to Union Bank AG’s shareholders and sent by the Zurich-based commercial lawyer Wolfram Kuoni. This is what the letter reads:
“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 [$15.17 million] to escrow account for a later capital increase by the end of November.”
Furthermore, it also adds that if the arrangement does not remain valid, FMA will withdraw the bank’s license and force it to liquidate.
Binance is Open for a Partnership with Union Bank AG and its Investors
Zhou said Binance remains open as far as a partnership with Union Bank AG and its new investors goes since it’s committed to adding reliable and safe fiat channels so that crypto is being adopted all over the world. Only earlier this week, Beijing-based blockchain data company DappReview was acquired by Binance for a sum that wasn’t disclosed to the public.
More than this, Binance bought India-based crypto exchange WazirX last month too. In September, it got the Seychelles-based platform for derivatives JEX and turned into Binance JEX for crypto future, perpetual contracts, and options, while in July, it acquired the US-based mobile wallet firm Trust Wallet, making its first acquisition.