Leading cryptocurrency exchange Binance has been on a spending spree in recent weeks, buying Indian crypto exchange, WazirX, and decentralized app data analytic startup, DappRadar.
According to local reports, Binance is also in talks with representatives to acquire a stake in Liechtenstein-based financial institution, Union Bank formerly known as Vaduz Privatbank Union, and could pay as much as 15 million CHF (appr. $15.1 million) for the deal.
The bailout notably comes after the Liechtenstein Financial Supervisory Authority set tough deadlines for new shareholders in the bank, which has commercial lawyer Wolfram Kuoni, as President.
Union Bank, as per the report, has lost its major backers, including Konstantin Shevago, an oligarch from Ukraine who is on the run from international authorities for his involvement in money laundering via banks.
Another unidentified major shareholder in the bank, an Iranian, has also fallen out of favor with the bank leaving Kuoni in a desperate search for investors.
Will Binance Pounce?
Given Binance’s recent efforts to expand its fiat gateways, it appears that the option to coup a Liechtenstein bank on the verge of collapse could be on the cards.
The report identified that talks are already underway in this regard, with Kouni reportedly writing in a letter to shareholders of Union Bank AG.
Yesterday, we had a meeting with the (Financial Market Authority) and the Representatives of Binance, which operates a globally leading cryptocurrency exchange.
According to Kuoni, the FMA is open to accept Binance as a shareholder, although the bank’s default of the regulator’s order towards fund management makes the situation a little less easy.
“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 reportedly wrote in the letter to shareholders.
Coinfomania has reached out to Binance for comments regarding the reported acquisition and will update this article as soon as we receive a response.
Correction: We adjusted the title and image in the article for clarification. The report says Binance could become a shareholder to bail out the Bank from liquidation.