Binance's Alleged Continued Operations in China Post-Ban

Binance's Operations in China

Recent revelations suggest that Binance continued to maintain operations and staff in China even after publicly declaring its closure in the region. Despite official claims of only having registered offices in Singapore, Malta, and Uganda, internal documents indicate that Binance kept staff employed in Shanghai until at least 2019. This continued presence contradicts the statements of Binance founder Changpeng Zhao, who has denied operations in China following the country's blanket ban on cryptocurrency trading in 2021.

Allegations and Responses

The reports reveal that Binance had payroll schemes for its Shanghai employees, including a recruitment team. Employees were reportedly instructed to avoid wearing branded apparel to conceal their affiliation with Binance, highlighting the secretive nature of the operations. In response to these allegations, Binance accused the Financial Times of misrepresenting historical facts.

Implications for Binance

These revelations emerge amidst legal challenges for Binance, with the U.S. Commodity Futures Trading Commission charging the company and its founder with illegally providing trading services in the U.S. The charges emphasize the use of virtual private networks (VPNs) to obscure users' locations, a tactic reportedly employed within China as well.

Conclusion

The claims about Binance's continued presence in China raise questions about the company's adherence to international regulations and its corporate transparency. As legal scrutiny intensifies, these revelations could impact Binance's global operations and its reputation within the cryptocurrency industry. The ongoing investigations will likely shed further light on Binance's practices and compliance with regulatory standards.