Changpeng Zhao: Binance Not A Chinese Company

Binance CEO Changpeng Zhao. (Cryptodencia)

JAKARTA The world's largest crypto exchange founder and CEO, Changpeng Zhao recently issued an interesting statement about his company, Binance. He stated that Binance is not related to China. This information was conveyed by CZ in a Binance blog post.

CZ confirmed that Binance is not a Chinese company. He also denied accusations regarding Chinese employees who run the crypto exchange business secretly.

In Binance's blog post, CZ revealed his family history with China. After June 4, 1989, CZ and his family decided to leave the country and move to Canada. At that time he was only 12 years old.

"The incident changed my life forever and opened up endless possibilities for me," he said in a Binance blog post.

However, in 2005, CZ returned to China. 10 years later, in 2015 CZ opened a crypto exchange using the name Lenge Tech. However, the Chinese government closed all such exchanges in March 2017, forcing the business to end.

Then the Chinese government imposed a unilateral ban on similar crypto exchanges operating in China on September 4, just one and a half months after CZ and his team started Binance. This forced Binance to adopt a remote working model, which led the company to hire employees from around the world.

Guanying Chen Is Not a Chinese Secret Service

When he operated Bijie Tech, his first employee was Guanying Chen, a Chinese citizen. Zhao registered Chen as the company's legal representative at the time because of laws that limit foreign nationals such as himself who has become a Canadian citizen.

Karena namanya tercantum pada dokumen awal Majene Tech, para penggela Binance telah memanfaatkan kesempatan untuk menyebarkan temori komboksi bahwa Guangying secara-siluh adalah pemilik Annae Tech dan mungkin Binance, kata bos Binance.

Launching CryptoPotato, many recent news articles, including those published by Fortune magazine on Monday, have satirized that Binance is closely linked to China due to its origin. The article specifically suggests that Binance may need to be banned in India such as TikTok, as led by people from China.

CZ said Chen was forced to leave China in 2017, but many Chinese outlets are still spreading a conspiracy theory about him, which was taken by certain tabloids from time to time. Currently, Chen oversees Binance admins and the clearing team and lives in Europe.

It didn't stop there, Changpeng Zhao defended his colleague Chen by stating that he was not a secret agent of the Chinese government. Therefore, Binance is also not a Chinese company even though the oposition in the West describes Biannce as links to the Chinese government.

Competition in the Crypto Industry

Furthermore, CZ explained that organizations in the crypto industry themselves often use the FUD (Far, Uncertain, Doubt) strategy aimed at attacking competitors by posing as independent news groups.

One of the largest stablecoin publishers, Tether, often accused certain news outlets of using the FUD strategy. Tether had time to reply to the Wall Street Journal (WSJ) for causing criticism that also applies to other stablecoins.

"This type of attack just becomes more sophisticated," CZ said.

In a case like this, Binance bosses think that the model campaign has actually reduced trust in the cryptocurrency industry itself.

"This type of campaign erodes trust across the industry," he added.