Changpeng Zhao, CEO of Binance, is addressing what he says are attacks on the crypto exchange’s reputation.
In a new blog post, the Chinese-Canadian billionaire says that Binance has been subject to multiple attempts to vaguely associate it with China and the Chinese government.
“Anyone with even a rudimentary knowledge of corporate law or how companies work will understand this: Binance was never incorporated in China. Nor do we operate like a Chinese company culturally. We have subsidiaries in many countries, including France, Spain, Italy, UAE (United Arab Emirates) and Bahrain (to name a few). But we don’t have any legal entities in China, and we do not have plans to. I believe it’s critical today that we come forward with these facts.
The greatest challenge that Binance faces today is that we (and every other offshore exchange) have been designated a criminal entity in China. At the same time, our opposition in the West bends over backward to paint us as a ‘Chinese company.’
The inference is that because we have ethnically Chinese employees, and perhaps because I am ethnically Chinese, we are secretly in the pocket of the Chinese government. We are an easy target for special interests, media, and even policymakers that hate our industry.
This is obviously not true.”
Zhao also says that he’s had his own conflicts with the Chinese government, including getting taxed at a 25% higher rate when purchasing a property for being a “foreigner,” as well as having to shutter a previous startup due to government policies.
The Binance CEO says that while the company’s business model may seem unorthodox relative to other big firms, he mentions that in an industry as nascent and fast-growing as crypto, it can be difficult to run a firm in a conventional manner.
“We are the largest crypto exchange and Web3 company on the planet. With that comes a great responsibility and an expectation of facing additional scrutiny. However, it’s important to remember that our industry is still in its infancy.
When your company suddenly goes from start-up to Fortune 100 overnight, nobody shows up at your office the next day with 1,000 experienced executives, streamlined processes, and technologies to suddenly operate like a two-hundred-year-old, established financial institution.
Like every other crypto exchange, growing and upscaling our staff and maturing our systems to match the growth of the industry has been the greatest challenge of my career. This is something that I have embraced and invested heavily in thus far.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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