Head of the Binance Exchange did not want to disclose the location of its headquartersImportant: Forbes: Binance earns from U.S. investors by cheating regulators (Operation Tai Chi)
This year's Ethereal Virtual Summit conference was held online. We already know about it at least from comments by Vitalik Buterin, who noted that cryptocurrency will help save the world after the end of the coronavirus pandemic. Yesterday, the last day of the event started with an interview with Binance exchange founder Changpeng Zhao.
In a 45-minute broadcast he discussed various topics relevant for the world of cryptocurrencies. However, the conversation was especially remembered for its ending. Zhao was talking to Unchained podcast host Laura Shin. During the conversation, he commented on the Libra project from Facebook, stablecoins and the national cryptocurrency of China. However, the brightest part of the conversation took place at the end. In the last minutes of the interview, Binance’s head gave a very evasive answer to the question about the location of the exchange's headquarters asked by Laura. And this fact alone can give rise to uncomfortable thoughts.
Where is Binance exchange located?
So, where is Binance headquarters located? Before answering the question, let’s take a short digression into the past. Until February 2020, the exchange was believed to be based on Malta. However, then representatives of Malta authorities made an official statement: Binance is not under their jurisdiction, that is, the exchange is not located on the territory of the country.
Since then, the management of the trading platform has been secretive about the location of their headquarters. It means that platform users do not know in which country the platform’s central office is located. And since the decentralization niche places a special emphasis on transparency, this situation looks strange. And, of course, it raises questions in people, including Laura Shin. So, let’s get back to the question about Binance headquarters location.
Zhao’s response to it was rather strange. He looked away and said the following.
Well, I think what this is the beauty of the blockchain, right, so you don’t have to … like where’s the Bitcoin office, because Bitcoin doesn’t have an office.
According to Changpeng, the company has loads of offices and its staff work in 50 countries. In theory, Binance is supposed to be a new type of organization that does not need registered bank accounts and postal addresses.
Wherever I sit, is going to be the Binance office. Wherever I need somebody, is going to be the Binance office.
Concealing information from clients is very strange. Fortunately, the podcast host did not depart from the topic and continued her attempts to clarify the issue. Here is her question:
But even to do things like to handle, you know, taxes for your employees, like, I think you need a registered business entity, so like why are you obfuscating it, why not just be open about it like, you know, the headquarters is registered in this place, why not just say that?
And again Zhao’s answer was evasive. Here is the quote:
It’s not that we don’t want to admit it, it’s not that we want to obfuscate it or we want to kind of hide it. We’re not hiding, we’re in the open?
After that, Zhao noted that he would not like to consider his company DAO, that is, a decentralized autonomous organization. According to him, this would cause a lot of debate. After that, Laura tried to find out where Changpeng himself was. His answer was ambiguous:
I am in Asia.
Shin asked Changpeng Zhao which country Changpeng was giving the interview from: after all, Asia is quite large. Zhao did not provide a clear answer to this question either.
I prefer not to disclose that. I think that’s my own privacy.
We believe that this interview with Binance CEO raises a lot of questions to the exchange. The founder of the platform is definitely not willing to share information that is important for the company's clients. For an exchange like Binance, actions like those may have an adverse effect on the reputation. And in general, such an approach seems strange: after all, there are usually no problems with locating companies’ central offices.
But here everything looks like a secret. It is not known why Zhao preferred not to disclose the information. We hope for an official response from company representatives that will clarify the details in the near future.
Comment from Scambinance.com:
Actually, there is nothing new as Binance is conducting criminal activity and is forced to conceal its offices (if there are any) and any legal data of its so-called exchange; any requests related to the subject (physical and legal addresses, or jurisdictions, or company details) are just ignored. We brought this up for public discussion in the article Binance Does Not Answer Questions About Its Legal and Physical Location. We have not received any answers from Binance so far, all tickets with the questions are closed, and email queries have been left unanswered.
Recommended to read: How Binance Exchange Hides the Legal Structure from Regulators and Users.