In a recent blog post by Binance, CZ, the Binance CEO, has responded to the critics and conspiracy about the claim that the largest cryptocurrency exchange is a Chinese-based “criminal entity” that “secretly [belongs] in the pocket of the Chinese government.”
The post was made on September 1st when the Binance CEO took out time to clarify the personality of Guangying Chen to the former Washington Post journalist.
Changpeng Zhao, the Binance CEO, said the question is in a regard to his personal friend and Chinese national Guangying Chen is the secret owner of Bijie Tech (a company he founded in 2015) and possibly also Binance.
Following his above statement, CZ further explained that Chen is his colleague whom he met through a friend who he employed to maintain the back office at Bijie Tech before re-hiring her again at Binance.
Some websites like Scam have allegedly tagged Chen as the 93% share owner at Bijie Tech and Binance. CZ stated that such rumours originated from an “old campaign that a competitor launched via an anonymous microsite.”
Further, CZ also refuted the claim that his company has close links to China and its government and to buttress his view on this, he went further to explain his hurdles on the Chinese authorities which are not crypto-friendly.
CZ Clarifies The Binance Origin
Another CZ tweet pointed to the fact that Binance is taken to be a “Chinese-origin[ed] crypto exchange”, which claimed Binance and other Chinese-linked centralized crypto exchanges were penetrating India by freely operating their services within India through illegal means.
According to CZ, Binance has subsidiaries in several countries such as France, United Arab Emirates, Spain, Italy, and Bahrain and has grown a team worldwide.
He said; “Over the past two years, as we expanded into Europe and the Middle East and recruited a more senior leadership team, Binance’s executive team is now more heavily dominated by Europeans and Americans.
“Our broader employee base is even more globally distributed. Despite these facts, some people insist on calling us a ‘Chinese company,”
CZ said Binance started in 2015 after he returned from Canada but the company was later closed down Chinese government.
He said; “Two years before Binance, I started a company called Bijie Tech, providing exchange-as-a-service platforms to other exchanges. We got 30 clients on board, and business was good […] Unfortunately, in March 2017, the Chinese government shut down all such exchanges. All of our clients went out of business.”
According to CZ, he brought a few past Bijie Tech employees in to launch Binance in July 2017, howbeit the Chinese government again actively close it down 6 weeks after its inception and this made almost all the workers leave.
“They then blocked our platform behind the Great Firewall. At this point, most of our employees left China. Only a small number of customer service agents remained by late 2018.”
Binance was legally incorporated in the Cayman Islands in 2017 but currently has no formalized headquarters. And as of October 2021, Binance already had a total of 28.6 million crypto users, making it the largest crypto exchange.