Debunking the Myth: The True Identity of Binance
Binance is often misperceived as a Chinese company due to its founder's roots and early operational context. However, this article uncovers the truth behind the myth by examining the evolution of Binance under its founder Changpeng Zhao (CZ). CZ's move away from China, partnership with Maltese regulators, and global outreach make it clear that Binance is an international entity with a Chinese origin but without any formal affiliation to the Chinese government or market.
The narrative around Binance often revolves around its alleged connection to China. Founded in Shanghai by Changpeng Zhao (CZ), Binance has been under constant scrutiny and misinterpretation regarding its nationality. CZ, a self-proclaimed Canadian with Chinese roots, insists that Binance is not a Chinese company but an international operation that merely shares a lineage with China due to its founder's origins and early days of operations.
CZ's journey began in his childhood spent in China before moving to Canada for education. Upon completing his studies, he returned to China where he founded an exchange-as-a-service company called Bijie Tech in 2015. This endeavor served at least 30 clients across various sectors, including platforms that allowed customers to trade art and collectibles, showcasing the broad scope of services offered by CZ's early ventures.
One of the key milestones in Binance's story was its decision to exit China, a move that led to the departure of notable employee Guangying Chen. A member of the team who never saw herself as part of the Chinese crypto scene, Chen's influence within Binance only solidified CZ's conviction that his company is not bound by traditional geographical or national affiliations.
Despite these clarifications and moves away from China, skepticism persists. Critics like Jacob Silverman have fueled the debate with questions about who Guangying Chen is and what her role in shaping Binance as a Chinese entity could be. CZ, however, has consistently dismissed such allegations, emphasizing his status as a Canadian-based entrepreneur rather than a representative of any specific country or culture.
Binance's journey from its inception in China to its current global status underlines the shift in its identity and operational principles. In 2017, Binance publicized that nearly 20% of its website visitors were from China, and it had surpassed 120,000 registered users, with half of them engaging actively on Binance daily. This growth was a testament to CZ's vision but also highlighted the global potential of digital currencies beyond their traditional Chinese context.
The company's strategic move to open an office in Malta in 2018 is a pivotal moment that underscores its commitment to international regulations and partnerships. Binance's collaboration with Maltese regulators reflects its desire to operate within established legal frameworks, further distancing itself from any narrow national or cultural label.
Binance CEO Changpeng Zhao has been vocal about the misinterpretation of his company as a Chinese firm, often using his own physical appearance and background as a counterpoint to these claims. The narrative is reinforced by Binance's global outreach, partnerships with various international institutions, and expansion into emerging markets.
In conclusion, Binance's identity transcends its origins. While it was founded in China and shares CZ's Chinese lineage, the company operates under a legal and organizational framework that distinguishes it from traditional national affiliations. Binance's global outlook and commitment to international regulations make it an entity of broad appeal across continents, not bound by narrow geographic or cultural allegiances.