Binance in a statement has reiterated that it no longer operates in China. The Financial Times published an article alleging that Binance CEO Changpeng Zhao and other executives had directed employees to conceal the company’s presence in China and that the company had an active mainland office until 2019. However, Binance’s spokesperson refuted these allegations and stated that the company does not operate in China and has no servers or data based in China.
According to the spokesperson, the original founding team members of Binance, based in Shanghai, left China just two months after the company was organized, following crackdowns on the crypto industry in China. The spokesperson also clarified that Binance has never been registered or incorporated in China and does not operate in China.
While Binance did have a customer service call centre based in China to service global Mandarin speakers, the company offered relocation assistance to those employees who wished to remain with the company starting in 2021. Binance has approximately 8,000 full-time employees from over 50 countries, with about 25% based near its regional hubs in Paris and Dubai.
On Monday, the Commodities Futures Trading Commission (CFTC) filed a civil lawsuit against Binance and its CEO Changpeng Zhao, alleging that the company violated derivatives rules by allowing U.S. residents to trade various financial instruments involving digital assets without licensing approval. Binance still needs to comment on the lawsuit.
This is not the first time Binance has faced legal action. In 2020, the company was sued by Sequoia Capital for allegedly violating an exclusivity agreement. The same year, the Financial Conduct Authority in the U.K. ordered Binance to cease all regulated activities.
Despite these legal challenges, Binance has remained one of the most popular cryptocurrency exchanges globally, with a daily trading volume of over $40 billion. The company has also launched its blockchain, Binance Smart Chain, and has invested in various blockchain projects.
In conclusion, the allegations of Binance’s ties to China have put the company under scrutiny. However, the company has vehemently denied these allegations and stated that it no longer operates in China. While Binance faces legal challenges, it remains a dominant player in the crypto industry and has continued innovating with its own blockchain and investments in various blockchain projects.
