Binance CEO Slams the 'Chinese Company' Label and His Links to the Country
The CEO of Binance denies that his company is "secretly in the pocket of the Chinese government."
Binance CEO Changpeng Zhao, aka CZ, has reacted angrily to critics who allege the site is "Chinese." According to the company's CEO in a blog post, the leadership team is now controlled mostly by Europeans and Americans, while the general staff is more widely distributed. "The conclusion is that we are covertly in the pocket of the Chinese government because we have ethnically Chinese personnel, and possibly because I am ethnically Chinese," CZ added. CZ stated that the firm does not have any legal entities in China and does not seek to establish any in the future.
"We are an easy target for special groups, the media, and even lawmakers that despise our sector," said the CEO.
Binance has a history of being cited by regulators throughout the world as the largest exchange by volume. Federal prosecutors working for the US Justice Department have demanded the exchange to submit material relevant to money laundering checks and talks between important persons inside the organization, including Zhao.
Regarding some of the theories surrounding Binance, CZ also hinted at an "old campaign" to denigrate the brand that was allegedly launched by competitors via an anonymous microsite.
Reflecting on his childhood, CZ said, "The irony of being forced to leave China again-some 30 years after my parents fled with my sister and me-is not lost on me."
The "Chinese-Canadian CEO" noted, "Just being of Chinese descent or having emigrated from China should not be a stain you have to carry for the rest of your life. Nor should it cause people to cast aspersions, make false claims or question loyalty to their country."
Zhao only returned to China from Canada in 2005, "when the web tech industry started to explode" in the country. He also revealed that because the Chinese government supported "the fledgling industry" behind the plans, many other companies registered in China first and the "best Web3-curious engineers and investors flocked to Shanghai and Hong Kong."
He argued that even FTX and Crypto.com were founded in Hong Kong during this time.
But, "Binance was never founded in China. We also do not operate culturally like a Chinese company. We have subsidiaries in many countries, including France, Spain, Italy, the United Arab Emirates and Bahrain (to name a few). But we do not have legal entities in China, and we have no plans to do so," CZ explained.
He also addressed conspiracy theories about Guangying Chen being the owner of Binance. He said, "Because her name is listed on early Bijie Tech documents, Binance opponents have taken the opportunity to spread a conspiracy theory that Guangying secretly owns Bijie Tech and possibly even Binance."
Apart from that, CZ has made it clear to the "opposition in the West" that it cannot be portrayed as a "Chinese company" and that Chen cannot be called the owner of Binance or a covert agent of the Chinese government.