Report: European agency declines deal between Binance's CZ and Union Bank

Swiss media has reported that the Liechtenstein Financial Market Authority (FMA) has rejected an application for Union Bank to bring on Binance chief executive as a "major" shareholder. 

According to a translation of a report from Inside Paradeplatz, the investment in Union by Binance CEO Changpeng Zhao would have saved the bank from closure after recent financial and legal troubles, including an ongoing corruption case involving its former majority backer. The bank had plans to relaunch as a crypto banking platform, but is now in the process of liquidating.

The report added that the deal was complicated by the fact that CZ wanted to conduct the transaction with crypto through an entity called CL1 Foundation. 

As The Block previously reported at the end of last year, Binance denied media reports claiming that it was looking to acquire Union Bank AG based in Liechtenstein, Europe.

“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,” Binance CFO, Wei Zhou, told The Block.

At the time, Inside Paradeplatz reported that Union officials had been meeting with “representatives of Binance” and the Financial Market Authority (FMA) of Liechtenstein.