Leading cryptocurrency exchange, Binance is in the news again, and this time, the exchange is reportedly in talks with representatives of Vaduz Privatbank Union, also known as Union Bank AG (UBAG) to acquire a stake at the Lichtenstein-based financial institution which is at the verge of liquidation.
Recent reports from InsideParadePlatz local news media reveal that the Liechtenstein Financial Supervisory Authority has ordered the bank with tough deadlines for its shareholders to “meet certain requirements for its own funds.”
With UBAG’s major shareholder, Konstantin Shevago, a Ukrainian billionaire and entrepreneur, now on an international wanted list for his involvement in fraud and money laundering, the bank is in a tight corner and needs new backers to rescue it from losing its banking license.
The bank also reportedly lost another of its major shareholders, an unidentified Iranian, giving the bank’s President, lawyer Wolfram Kuoni, little time to redeem his bank.
The crypto giant to the rescue
Binance, according to the report, may just be the last hope for Union bank, as both firms are currently in talks about how Binance could become a shareholder with an investment of up to 15 million CHF, which is approximately $15,150,000.
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“Yesterday, we had a meeting with the Financial Market Authority (FMA) and the representatives of Binance, which operates a globally leading cryptocurrency exchange,” Kuoni said in a letter to shareholders last month.
While the country’s financial regulation, the FMA, is positive towards Binance, the exchange must first file for approval with the regulator and make payment to an escrow account.
“The FMA has made it clear that Binance must file an approval as a shareholder and pay in amount of CHF 15 million to escrow account for a later capital increase by the end of November,” Kuoni wrote in the letter.
Binance denies the rumors
In response to the above, Wei Zhou, Binance CFO, had replied to CryptoPotaot in the matter:
“The reports that claim Binance is investing into Liechtenstein Union Bank or has applied with the Financial Market Authority to become a shareholder of the Bank are inaccurate.
However, Binance would be open to exploring a partnership with Union Bank and its new investors. Binance is committed to adding safe and reliable fiat channels to drive crypto adoption around the world.”