Binance Operated in China Despite 2017 Crypto Ban
Despite claims of exiting China in late 2017, Binance maintained ties to the country, as reported by the Financial Times. The report alleges that CEO Changpeng Zhao and other top executives instructed employees to hide Binance's presence in China, even using a Chinese bank for salary payments and maintaining an office until the end of 2019.
Binance Spokesperson Denies Mischaracterized Events
A Binance spokesperson refuted the claims in an emailed statement to the FT, stating that the report paints an inaccurate picture of Binance's operations. They insisted that Binance does not operate in China and has no servers. The spokesperson also clarified that the Chinese government has no access to Binance data except when complying with lawful law enforcement requests.
Binance's Call Center in China Serves Global Mandarin Speakers
The Binance spokesperson explained that the company has a customer service call center in China to support global Mandarin-speaking customers.
U.S. Regulator Raises Questions About Binance Operations
The U.S. Commodity Futures Trading Commission has recently raised concerns about Binance's business operations. The regulator is suing the exchange for unregistered trading activity in the U.S., among other allegations.
LATEST: Financial Times reports that Binance, the world's largest cryptocurrency exchange, has been hiding significant connections to China for a number of years.
— Paryte (@Parytecom) March 29, 2023
Cryptocurrency Outflow from Binance Amid Regulatory Scrutiny
Following the lawsuit's announcement, Binance experienced $2.2 billion of cryptocurrency outflow within 45 hours, according to The Block Research. The same period saw $1.3 billion of cryptocurrency inflow, resulting in a net outflow of $900 million.
