Skip to main content

Binance Execs Accused Of Concealing Exchange Ties To China

 

According to a report from the Financial Times (FT), Binance chief Changpeng "CZ" Zhao and other senior executives have been hiding the crypto exchange's connections to China for years, mired in a somewhat shady series of dealings with the country.

Despite Binance's claims of leaving China following the 2017 ban on cryptocurrencies, the Financial Times alleges that the exchange maintained significant ties to the country, including an office which was allegedly used until late 2019 and a Chinese bank utilized for employee payments.

This report lends a certain degree of credibility to the United States Commodity Futures Trading Commission's (CFTC) lawsuit filed against Binance on March 27, accusing the exchange of deliberately obscuring its executive offices' location and the entities operating the trading platform.

In response, Binance insists that it "does not operate in China nor do we have any technology, including servers or data, based in China," and that the Chinese government has no access to Binance data except through lawful law enforcement requests.

"It is unfortunate that anonymous sources are citing ancient history (in crypto terms) and dramatically mischaracterizing events. This is not an accurate picture of Binance’s operations," a spokesperson for the firm said.

The unfolding Binance controversy highlights the tension between the tacitly utopian vision of cryptocurrencies as a decentralized alternative to traditional financial systems and the current reality of powerful exchanges allegedly operating outside of the law.

These alleged links between Binance and the Chinese state further complicate the situation, revealing the intricate interplay between companies and authoritarian states, and the effect that these ties have in forming over a rapidly developing crypto landscape. 

The alleged concealment of Binance's ties to China can be seen as a reflection of the obfuscation and manipulation that is all too common among authoritarian entities, arguably contradicting the foundational principles of decentralization, autonomy, and freedom from coercive control that's key to the original vision of crypto.

In this instance, it is crucial for those keen to crypto's vision to address the role of the Chinese state, known for its authoritarian approach, within this context. 

China's heavy-handed tactics in regulating cryptocurrencies and its broader history of censorship and suppression raise concerns about the potential impact of such governance on the development and adoption of decentralized technologies. 

Why would Binance involved itself with such an entity? 

Is it purely for the sake of profit? 

Was Binance threatened or coerced in any way by the Chinese state? 


These remain as key questions on the matter as more details unfold with continuing investigations.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Comments

Contact us

Name

Email *

Message *

Popular posts from this blog

Cryptocurrencies Adding to the Safety and Security in the UK Gambling Industry

These are exciting times for the UK gambling industry. The impact of internet technology is now being felt with online gambling now controlling the industry.  The adoption of cutting-edge technology is reasonable for the boom in the industry. From live casinos, mobile apps to artificial intelligence, incredible trends continue shaping the gambling industry. However, it is the rise of cryptocurrency casinos that seeks to redefine UK gambling.  Many operators now include crypto coins such as bitcoin, Ethereum and Litecoin as part of their banking methods. Others offer exclusive bitcoin payments and promotions based on digital tokens. This revolutionary trend has a huge impact due to enhanced safety and security on these platforms. Players looking for peace of mind when playing online now opt to use cryptocurrencies. This post looks at how cryptos guarantee the safety and security of players at online casinos. How Cryptocurrency Gambling Works There’s a lot of talk ab...

Coinbase to Require Recipient Information for Crypto Transfers From Users in Canada, Singapore and Japan

  Customers in those countries who send crypto outside their Coinbase accounts must provide recipients’ names, addresses and in some cases, additional information, as of early April. Cryptocurrency exchange Coinbase Global (COIN) will soon require its customers in Canada, Japan and Singapore who send cryptocurrency to another financial institution or exchange to provide the name, address and in the case of Japan, the destination wallet of the recipient. Coinbase has been sending notices to its customers in those countries that the changes will take effect in early April in order to comply with local travel rules in those places. Coinbase didn't immediately respond to requests for additional comment on the moves, but confirmed that they were taking place. The move  does not seem to be going over well  with Coinbase customers in those countries, who value the anonymity of transactions using cryptocurrency. According to a  FAQ provided by Coinbase , for Canadian users, ...

Farm GRASS earn MONEY

  Use your Unused Internet Bandwidth to make $$$ In today’s interconnected world, the concept of passive income has taken on new dimensions, offering innovative ways for individuals to monetize underutilized assets.  One such groundbreaking avenue involves earning money by selling your unused internet connection.  By participating in decentralized networks like Grass, individuals have the opportunity to turn their dormant bandwidth into a valuable asset, contributing to a fairer and more equitable digital landscape while generating income. Grass is a decentralized network sharing application designed to offer an alternative to existing centralized networks.  It allows users to sell their unused bandwidth directly, without the need for exploitative middlemen.  The platform operates by enabling users to download a web extension that runs in the background, assisting others in accessing public web data in exchange for payment using the protocol’s native token. How ...