Fortune Magazine has been granted an interview with the proprietor of Binance, the largest cryptocurrency exchange in the world. This year, CZ, whose actual name is Changpeng Zhao, has been mainly mute in public. The profile describes this as “a decision based on the volatile regulatory environment and Binance’s frustration with media mischaracterizations of the company and Zhao.”
To put it bluntly, Beijing officials detested cryptocurrencies. China banned cryptocurrency transactions by banks for the first time in 2013. In 2017, the government also prohibited initial coin offerings (ICOs) and shut down cryptocurrency exchanges in an effort to prevent financial misconduct and prevent money from leaving China. The article describes CZ’s weeks-long “frantic but stealthy” endeavor to transfer data hosted on over 200 Alibaba servers.
Zhao moved Binance’s infrastructure to Amazon Web infrastructure, where they are beyond the reach of the Chinese government. Eventually, the company relocated to Tokyo, putting an end to his 12-year tenure as an entrepreneur in China.
According to reports, Binance had to relocate its operations multiple times due to regulatory issues in various countries. After relocating to Japan, regulators demanded Binance register as an exchange, which the company’s founder deemed unacceptable. Binance relocated to Malta before deciding to operate without a physical headquarters.
At one point in the interview, CZ implies that the culture of cryptocurrency made him more eager to continue seeking out better business opportunities.
The corporation is currently negotiating a comprehensive settlement offer with the U.S. Justice Department and other regulators. Nonetheless, recent litigation filed by the Commodity Futures Trading Commission against Binance has cast doubt on the viability of such a settlement.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.