When a Washington Post reporter questioned Binance co-founder Zhao Changpeng about an executive linked to the cryptocurrency exchange in China, it sparked a heated response from Zhao, who defended the company against the perception of being labeled “Chinese.” He refuted claims of having legal entities in China and accused competitors of trying to undermine trust in Binance.
Despite Zhao’s account that the executive, Chen Guangying, currently lives in Europe and has minimal ties to Binance, China’s significance to the exchange has heightened following a hefty fine and regulatory challenges across the US, Asia, and Europe. While officially not operating in China, Binance’s substantial presence within the country involves users signing up from mainland China by indicating Taiwan as their location.
Amid shifting global regulations, China remains a crucial market for Binance, with reports indicating significant crypto activity, particularly with transactions from China-based customers. The regulatory stance in China poses uncertainty, with courts having differing opinions on the legality of crypto, creating a grey area for its usage.
Binance’s affiliation with China persists despite official disclaimers that its services are not for mainland China or Hong Kong. Users navigate around location restrictions, gaining approval even with mismatched identification details. The exchange’s affiliate program, primarily comprising Chinese members, offers attractive commissions for referrals, contributing to its widespread usage in the country.
The company has denied having a presence in China, although past employee accounts suggest a different narrative. While the platform’s website is inaccessible within China, its app remains widely used without VPNs, similar to other exchanges.
The focus now turns to Binance’s new CEO, Richard Teng, and the potential for clearer operational transparency. Yet, with China’s crypto activity persisting despite the ban, Binance’s future strategies and their relation to the Chinese market remain a focal point in the evolving crypto landscape.
