Is Binance abandoning China’s crypto market? Binance founder Changpeng Zhao criticized Chinese crypto investors for speculation, blindly following others, with no prior research. Changpeng Zhao’s statement may reflect the status of Binance’s fundraising and headquarters plan.
Changpeng Zhao (CZ), founder and CEO of the world’s largest crypto exchange, told Forbes about Binance’s market strategy. On China’s crypto market, CZ said: “China is more of a speculative market. And that’s not a recommended way for trading. China actually has a lot of novice traders who don’t really know much.”
CZ said there is a lot of money flowing in China, and a lot of people who are wealthy. However, Chinese don’t trust other people to manage their money, so there’s not much of an institutional market in China. “Even billionaires manage their own trading accounts themselves and place orders using a mobile phone,” said CZ.
“Even China’s stock market has always been highly speculative. People follow other people, they don’t do as much fundamental research themselves,” said CZ. “And other aspects of crypto have not grown much in China—like payments.”
CZ’s Choice of Binance’s Headquarters: Ireland?
This year, Binance, the world’s largest crypto exchange, has become the target of global regulators. However, according to CZ, they are having “constructive” discussions with governments and regulators. Also, he emphasized Binance is extremely collaborative, which actively seeks meeting with the regulators. “We are moving from a decentralized structure to a centralized structure, which the regulators are much more comfortable with.”
The market expects Binance to establish a global headquarters, with top spots including Ireland, France and Dubai. In the interview, CZ didn’t reveal the headquarters location. “So we have established a global legal entity for our headquarters,” CZ said. “And we’re establishing local entities, local offices and board governance structures. That’s mostly established now, and the details will probably come out later.”
Last week, CZ told Financial Times that Binance is negotiating with several sovereign funds on an investment deal. This can be part of a move for Binance to improve its relationship with governments. Moreover, Binance’s U.S. division is set to go public in the U.S. stock market within 1 to 2 months.
Interestingly, CZ has been quite high-profile in recent days. CZ actively responded to Hilary Clinton’s latest comment on the U.S. crypto regulation. And, he argued with Elon Musk on Binance’s arrangement in Dogecoin withdrawals.
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