Yesterday, September 1, the official Binance blog posted an article on the subject of whether the exchange is a Chinese company. CEO Changpeng “CZ” Zhao thus decided to respond to critics and supporters of “conspiracy theories” about official Beijing’s influence on the company’s course.
What are the rumours floating around Binance?
A “conspiracy theory” is gaining popularity online that the exchange is not just operating in China, but is a “pocket toy” of China’s Communist Party. This is allegedly how Beijing controls some of the financial flows in the cryptocurrency, monitors users and influences geopolitics.
These rumours have flared up with renewed vigour after a former Washington Post journalist made several statements on Twitter. In particular, he asked the site’s management representative to explain who Guangyin Chen is and what role she plays in the management of Binance.
She is a Chinese national and Zhao’s colleague. She allegedly founded Bijie Tech in 2015 and is also a “grey cardinal” of Binance. But as CZ himself has stated, none of this is at all true.
Who is Guangyin Chen?
The head of Binance claims that he is the one who founded Bijie Tech. Chen, in turn, headed the back office. Due to the specifics of Chinese laws, it is difficult for a foreigner, and CZ is a Canadian citizen, to do business in the country. That is why Zhao hired Chen.
Her name was on the first official documents of the exchange, which gave rise to rumours about the real owner of the two companies. In 2017, she, like most of the exchange’s other employees, left China.
Pro-government media still spread conspiracy theories about her, calling her a spy for the West. According to CZ, he is forced to face “racism” on a daily basis as Binance is seen as a “stronghold of traitors” in both camps, in China and across the ocean.
Is Binance a Chinese company?
CZ claims it is not. Like many other corporate giants in the cryptocurrency world, Binance is multinational. It has Chinese nationals, but they have left their homeland and have no ties to the Communist Party.
Moreover, the exchange is illegal in the PRC. CZ appealed not to judge his company by the ethnicity of the top management and asked the media to be tolerant so as to avoid a new round of conflict. Recall that Binance is among the exchanges that have received a notice from the US Congress. Officials are investigating more than $1 billion in fraud in the crypto-sphere. The prosecutor’s office has already requested correspondence from the exchange’s top management.