Binance Accused of Hiding Office in China Despite Withdrawal Claims: Financial Times
The Financial Times has reported that Binance, a major cryptocurrency exchange, has allegedly concealed its office in China, despite claiming to have withdrawn its operations from the country at the end of 2017. At that time, China had banned cryptocurrency-related services.
According to the report, some top executives, including CEO Changpeng Zhao (CZ), were on a list of people who instructed employees to hide the office in the region. Furthermore, the Financial Times report reveals that the exchange had used a Chinese bank to pay salaries to staff working in the office until the end of 2019.
Binance hid extensive links to China for several years https://t.co/VkpVHnHadz
— FT Markets (@FTMarkets) March 29, 2023
In response to the allegations, a Binance representative stated in an email to the Financial Times that anonymous sources were providing inaccurate information. The exchange emphasized that it does not operate or own any office in China.
“To be clear, the Chinese government, like any other government, does not have access to Binance’s data unless we are legally obliged to comply,” a Binance representative said.
The news comes after CZ and Binance were sued by the US Commodity Futures Trading Commission (CFTC) on March 27. As reported by AZCoin News, CZ and the exchange are accused of violating trading and derivatives rules. The lawsuit was filed in a federal court in Chicago, with the CFTC alleging that Binance had evaded its obligation to register its services with US regulators. Following the lawsuit, around $2.2 billion in cryptocurrency was withdrawn from the exchange in a 45-hour period, according to The Block Research.
However, on March 28, CZ published an official response to the CFTC lawsuit on the company’s blog. He stressed that Binance does not trade for profit or manipulate the market in any way. CZ explained that the company trades on the exchange mainly to convert cryptocurrencies into fiat money and cover expenses.
The allegations against Binance and CZ, as well as the recent CFTC lawsuit, have raised concerns among investors and regulators about the exchange’s compliance with regulations. As the cryptocurrency market continues to grow, it is essential that exchanges like Binance operate transparently and follow all legal requirements to maintain the trust of users and regulators.
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