According to many sources online, there is much speculation on whether Binance will survive the upcoming Chinese crackdown on Cryptocurrencies.
The state-run Securities Journal has reported that “China will gradually clean up over-the-counter trading platforms, peer-to-peer networks where large exchanges occur and firms registered in the country which allow Chinese to trade overseas.”
According to a leaked document, seen below, it appears that due to electricity usage, pollution and “the havoc that could be triggered by investors losing money in mining and cryptocurrencies”
Two thirds of the power consumed from Bitcoin mining comes from China, so this is a massive amounts. Mining Operations have reportedly opened up near coal-fired power plants for cheap electricity. China is also currently implementing a plan to jack up electricity pricing for mining operations.
Notice from China special rectification on risks in Internet Finance department to local government to make a plan before Jan 10th – “ lead mining factories quit gradually” #btc #bitcoin #BitcoinMining with Central Bank official Chop. Prepare for the roller coaster!!!! pic.twitter.com/OLv8j1veHb
— 🎀 (@cryptovenus) January 5, 2018
It would seem that China’s plan is to gradually phase out mining and potentially exchanges too, which is why there is a large concern over using Binance.
Changpeng Zhao, CEO at Binance, as well as Binance as a company have released the following statements and bits of information regarding the stability of Binance in relation to the apparent upcoming Chinese crackdown.
Interview with Francisco Memoria
October 29, 2017 – ccn.com
From this interview we can see that CZ (Changpeng Zhao) first states that Binance has always been registered outside of China, and their servers were also outside of China (in Korea) when the news broke. He also talks of how confident he is in Binance, and then reiterates in the third question, that they are not a Chinese exchange, and that they actually don’t service Chinese customers. This can be corroborated with the Binance press release on September 14, 2017 as seen below.
CZ is also a Canadian citizen, and therefore isn’t in any way susceptible to Chinese laws, repatriation requests etc. As mentioned before, their servers are in South Korea as well as Japan, and their offices are located in South Korea, Japan and Taiwan. The exchange has disallowed Chinese users, and is also unlikely to need to answer to the SEC in the US, or Korean Officials as they do not trade in fiat currencies.
Binance is a GREAT platform for trading, holding and managing your portfolio effectively, I do not see any reason for concern regarding the Chinese government, or any other one being able to interfere with the exchange for the foreseeable future. Binance has grown impressively, and has continued to deliver great service to both myself, as well those who I have referred and helped set up their portfolios.
To sign up for Binance, click here. I will be doing a step by step guide over the next few days on how to set up your account, tips and tricks for trading and managing your portfolio, as well as setting up precautionary measures such as stop losses.
Tiaan Wolmarans is a cryptocurrency investor and trader, airplane pilot, musician, and writer.
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