• Binance, the world’s largest cryptocurrency exchange, has been accused of concealing its ties to China and misleading customers about their operations.
• Internal documents have revealed that the company had a Chinese office in use until 2020 and paid staff salaries via a Shanghai bank.
• These findings raise questions about Binance’s commitment to transparency and regulatory compliance.
Binance Accused Of Hiding Ties To China
The world’s largest cryptocurrency exchange, Binance, is facing allegations of concealing its links to China for years despite officially leaving the country after the crypto crackdown in 2017. A recent Financial Times report uncovered evidence that the company had deep and extensive connections with the country well into 2020.
CFTC Lawsuit For Illegal Services
These revelations come as Binance is currently embroiled in several regulatory issues, including a lawsuit by the US CFTC for allegedly providing illegal services to American clients. The CFTC accused Binance of deliberately hiding information on their executives’ offices and misleadingly suggesting that their headquarters were based on CEO Changpeng Zhao’s whereabouts as part of a strategy of regulatory evasion.
Internal Documents Reveal Extensive Links To China
Internal documents have highlighted how Binance employees were directed to hide any Chinese operations from customers, including an office in use until at least early 2020 and instructions to pay salaries through a Shanghai bank account. These findings add fuel to speculations about whether or not Binance is committed to maintaining transparency and abiding by regulations.
Binance Denies Allegations
In response to these allegations, Binance dismissed them as “ancient history” which was “dramatically mischaracterizing events.” However, this stance has done little to quell concerns over whether or not the company is really compliant with global regulations.
Investigations Into Regulatory Evasion Continues
Investigations continue into potential activities which could be seen as assisting Chinese users evade their own country’s stringent crypto regulations; further compounding suspicions surrounding Binance’s true intentions going forward