In the latest blow to Binance, Stéphanie Cabossioras, the Managing Director of its French unit, resigned, marking the fifth high-profile exit from the cryptocurrency exchange. This follows the departures of the Head of Product, Chief Strategy Officer, General Counsel, and Asia-Pacific Leader. David Prinçay, President of Binance France, expressed gratitude for her contributions during this challenging period.
Binance has been grappling with escalating global regulatory challenges. In Europe, the company faced regulatory hurdles in the Netherlands, Belgium, and Germany which led to service suspensions and withdrawal of regulatory applications. The exchange also restricted new registrations in the UK in compliance with new guidelines set by the Financial Conduct Authority (FCA).
The company’s partnership with rebuildingsociety.com came under FCA scrutiny due to authorization problems related to crypto advertisements. French authorities have initiated an investigation into Binance over allegations of offering illicit digital-asset services and involvement in money laundering.
In the US, Binance and its CEO Changpeng Zhao have been accused of mishandling customer funds and deceptive regulatory practices. Furthermore, Binance.US halted US dollar withdrawals after it was revealed that customer deposits were not insured by the Federal Deposit Insurance Corporation (FDIC). Following charges by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), The market share of Binance.US has plunged to below 1%.
