In response to inquiries regarding a little-known executive in China, Binance co-founder Zhao Changpeng vehemently defended the exchange against claims of being “Chinese” in a lengthy blog post last year. Denying any legal entities in China, Zhao highlighted efforts to erode trust in Binance’s brand by competitors.
China Remains a Crucial Market for Binance
Despite a recent $4.3 billion fine and criminal conviction in the US, coupled with tightening regulations globally, China remains a crucial market for Binance. While facing challenges in the US, UK, Germany, Japan, and Singapore, the exchange maintains steady business in China, leveraging a workaround where users register from mainland China by listing their location as Taiwan.
Amid a shifting regulatory landscape, Binance’s significant presence in China is evident. Reports indicating that China-based customers accounted for a substantial portion of crypto traded on the platform. The ban on commercial crypto activity in China is loosely enforced, contributing to the exchange’s continued success in the country.ju65
Although the legal implications of trading crypto in China are uncertain, Binance’s scale gives it a competitive advantage over rivals like OKX and HTX. With 60 million visitors, Binance outpaces competitors such as Coinbase and OKX, facilitating seamless transactions for users.
Despite official disclaimers that Binance services are not meant for mainland China or Hong Kong, users find workarounds to bypass geographical restrictions. Reports suggest that Binance employees and volunteers coach users on circumventing these restrictions, emphasizing the exchange’s appeal to Chinese traders.
Binance’s affiliate program, primarily composed of Chinese members, further strengthens its ties to the region. Top affiliates can earn substantial commissions, and the exchange hosts exclusive events for Mandarin-speaking affiliates and influencers. Reinforcing its connection to mainland China.
While officially claiming no presence in China, Binance’s status has evolved over the years. After a 2017 crackdown on crypto exchanges, the company adopted a globalized strategy, encouraging Chinese employees to relocate. However, Binance’s strict crackdown or large-scale investigation in China did not materialize.
As Binance faces heightened scrutiny and a leadership change with newly appointed CEO Richard Teng. Questions linger about the company’s transparency . Official headquarters location. Teng has shown no indication of increased transparency. Leaving uncertainties about Binance’s future plans and its operation under global crypto regulations.
Despite the challenges, China crypto market remains vital for Binance. The exchange continues to navigate the complexities of global regulations while maintaining a significant presence in the world’s most populous country.