Crypto News

Binance is Not a Chinese Company, Declares CEO

Binance CEO Changpeng Zhao (CZ) not too long ago launched a assertion on Binance weblog to demystify the company’s relationship with China. 

He asserted that Binance is not a Chinese company, and that conspiracy theories of a Chinese worker secretly operating the business are unfaithful. 

CZ’s History With China

In the statement printed on Thursday, CZ started by recounting his personal historical past with the China. He and his household fled from the nation to Canada when he was 12 years outdated, solely two months after the occasions of June 4th 1989.

“It changed my life forever and opened up endless possibilities for me,” he wrote. 

CZ moved again to China in 2005, and began an exchange-as-a-service business known as Bijie Tech in 2015. However, the Chinese authorities shut down all of such exchanges in March 2017, forcing the business to finish. 

It then imposed a comparable unilateral ban on crypto exchanges working in China on September 4th – simply a month and a half after CZ and his crew began Binance. This compelled Binance to undertake a distant working mannequin, which led to the company hiring staff from throughout the globe. 

The Guanying Chen Controversy

According to the CEO, one of many workers that labored for him at his first company – Bijie Tech – was Guanying Chen, a Chinese nationwide. CZ had her listed because the company’s authorized consultant on the time because of restrictive legal guidelines in China surrounding foreigners like himself – a Canadian citizen. 

“Because her name is listed on the early Bijie Tech documents, Binance’s detractors have leaped at the opportunity to spread a conspiracy theory that Guangying was secretly the owner of Bijie Tech and possibly even Binance.” defined the chief.

Many latest information articles, together with one published by Fortune journal on Monday, have insinuated that Binance is deeply linked to China because of its origins. The aforementioned piece particularly recommended that Binance might should be banned in India like TikTok was, because of being “led by persons of Chinese origin.”

CZ stated that Chen was compelled to depart China in 2017, however that many Chinese shops nonetheless unfold “conspiracy theories” about her, which sure tabloids decide up on now and again. Today, Chen oversees Binance’s admin and clearing crew and lives in a European nation. 

The CEO concludes that Chen is not a “secret Chinese government agent,” and that Binance is not a Chinese company, regardless of makes an attempt from its “opposition in the west” to color it as such. 

Fake News and FUD in Crypto

The CEO famous that malicious FUD campaigns are fairly frequent in crypto, and are sometimes began by organizations inside the trade. Some exchanges, he stated, have even created websites devoted to bashing opponents whereas masquerading as impartial newsgroups. 

Tether – the world’s largest stablecoin issuer – incessantly points statements concentrating on information shops spreading doubt concerning the agency. On Tuesday, the agency fired again on the Wall Street Journal (WSJ) for singling out Tether with criticisms that equally apply to different stablecoin issuers.

“These types of attacks are only becoming more sophisticated,” stated CZ. “These types of campaigns erode trust in the entire industry.”

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