Binance CEO Changpeng Zhao Says Top Exchange Is Not ‘Chinese Company’ Amid Accusations

Binance CEO Changpeng Zhao is facing what he believes are attacks on the cryptocurrency exchange’s reputation.

In a new blog post, the Chinese-Canadian billionaire says Binance has been the subject of multiple attempts to loosely associate it with China and the Chinese government.

“Anyone who has even the rudimentary knowledge of corporate law or how companies work will understand: Binance was never incorporated in China. Nor do we operate culturally as a Chinese company. We have branches in many countries including France, Spain, Italy, United Arab Emirates (UAE) and Bahrain (to name a few). But we have no legal entity in China and we have no plans to do so. I believe it is essential today to present these facts.

The biggest challenge Binance faces today is that we (and every other offshore exchange) have been designated as a criminal entity in China. At the same time, our opposition in the West goes out of its way to portray us as a “Chinese company”.

The inference is that because we have ethnically Chinese employees, and perhaps because they are ethnically Chinese, we are secretly in the pockets of the Chinese government. We are an easy target for special interests, media and even politicians who hate our industry.

This is obviously not true ”.

Zhao also says he has had his conflicts with the Chinese government, including being taxed at a 25% higher rate when buying a property for being a “foreigner”, as well as having to shut down a previous startup due to government policies.

Binance’s CEO says that while the company’s business model may seem unorthodox compared to other large companies, he says that in a nascent and fast-growing industry like cryptocurrency, it can be difficult to run a company in a conventional way.

“We are the largest cryptocurrency exchange and Web3 company on the planet. From this comes a great responsibility and the expectation of having to face further scrutiny. However, it is important to remember that our industry is still in its infancy.

When your business suddenly goes from start-up to Fortune 100 overnight, no one shows up at your office the next day with 1,000 experienced executives, streamlined processes, and technologies to suddenly operate as a two-hundred-year-old established financial institution.

Like any other cryptocurrency exchange, growing and upscaling our staff and maturing our systems to match the growth of the industry has been the biggest challenge of my career. This is something that I have embraced and invested heavily in so far ”.

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Featured image: Shutterstock / iurii / Vladimir Sazonov

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