Changpeng Zhao denied Binance's connection with the Chinese authorities

Changpeng Zhao denied Binance's connection with the Chinese authorities

Changpeng Zhao rejected Binance's relationship with the Chinese authorities

Binance CEO Changpeng Zhao revealed the details of the creation and development of the bitcoin exchange. He reacted to the discussion about the use by competitors of the thesis about the close connection of the platform with the Chinese authorities, which they spread through the media.

In August, analyst FatMan reported that his trusted sources confirmed that FTX was organizing a black PR campaign against the platform.

Binance Communications Director Patrick Hillmann intervened. Former Washington Post journalist Jacob Silverman asked him who Guangying Chen was.

In the article, Zhao noted the increased number of defamatory attacks against the company in recent times. He acknowledged that this is not only faced in the media, but also behind closed doors in meetings with politicians.

The CEO of Binance explained that the purpose of such campaigns is to undermine brand credibility and weaken the attraction of new partners and investors. . The attacks themselves are getting more and more sophisticated, such as the one associated with CryptoLeaks.

Such actions undermine the credibility of the entire industry. Binance itself does not intend to respond in kind, as it focuses on building the largest crypto exchange and, more broadly, a Web3 company, he said.

According to Zhao, employees of many firms have similar profiles with a predominance of Asians.

“Over the past two years, with active expansion, Europeans and Americans have begun to predominate in the top management of Binance. In general, the state is distributed globally around the world. But many continue to stubbornly call the platform a “Chinese company” without meaning anything good,” lamented the top manager.

He noted the challenges he has to face given the explosive the growth of an industry still in its infancy. Among them, increasing the team and improving the system so that the five-year-old company operates as an established institution with a two-hundred-year history.

Binance was founded in July 2017, but Zhao returned to Shanghai in 2005, together with two Americans, two Britons and one Japanese, where he created various IT startups over the years.

Zhao considers himself Canadian. After the events in Tiananmen Square, his family emigrated to Canada when he was only 12 years old. Then he studied at McGill University and worked at Bloomberg, after which he decided to try his hand at entrepreneurship.

The CEO of Binance recalled that he, as a foreigner, had to pay a 25% tax when buying a condominium in Shanghai, which he later sold to purchase the first cryptocurrency.

“Without the tax, I could have 25% more Bitcoin today,” he reasoned.

< p>Two years before Binance, Zhao and partners founded Bijie Tech, which provided Exchange-as-a-Service to other exchanges (artworks and collectibles like stamps, baseball cards).

According to him , business was doing well, but two years later, the Chinese authorities banned the activities of their clients.

On July 14, 2017, Zhao, together with people from Bijie Tech, decided to found a bitcoin exchange. This happened at the time of the bear market that arose as a result of the repression of industry participants by regulators in Japan and South Korea.

September 4 of the same year, the Communist Party demanded the closure of cryptocurrency platforms. As a result, the CEO of Binance and the team were forced to leave China.

At the very beginning, employees worked remotely, but all this time the issue of opening a head office did not disappear from the agenda. The COVID-19 pandemic has effectively cemented the pattern. Zhao emphasized that even the Nasdaq-listed Coinbase does not have a headquarters.

The previously mentioned Guangying Chen Zhao invited Bijie Tech to work as a legal representative of the company. He called it “common practice” for foreigners like himself working in Shanghai due to legal restrictions.

Chen, like Zhao and the Binance team, was forced to leave the country. The status of the legal representative has become the basis for conspiracy theories that she is the owner of Bijie Tech and Binance, which is not true.

Chen had to face attacks from the media, including Chinese, and haters on social networks, as a result move to one of the European countries for “a quieter life with the family.” Zhao expressed regret that she still has to deal with this.

According to the CEO of Binance, Chen is currently leading the administration and clearing team of the organization. Zhao emphasized that she does not own the platform and is not a secret agent of the Chinese government.

The top manager stressed that Binance cannot be called a “Chinese company” either.

“Binance has never been incorporated in China. We also do not operate as a Chinese company culturally. We have subsidiaries in many countries including France, Spain, Italy, UAE and Bahrain to name but a few. We do not have any legal entities in China, and we do not plan to open them “,” he explained.

Zhao complained that due to the status of an ethnic Chinese and having Middle Kingdomers Binance is an easy target for the media and even politicians who “hate our industry.”

“I am a Canadian citizen, period. My origin or emigration from China should not be a scarlet letter to wear for the rest of my life. This does not give you the freedom to slander, make false claims, or question someone's loyalty to their country,” Zhao concluded.

Recall that Reuters recently reported that the US authorities requested records of Binance's CEO to investigate money laundering.

In July, Zhao filed a lawsuit against Bloomberg Businessweek, accusing him of defamation. 

Two years earlier, the bitcoin exchange filed similar allegations to Forbes.

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