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Binance stability rumours amid Chinese crackdown

The Rumour

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.

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.

The Facts

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.

My Opinion

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.

Disclaimer: The information presented by Tiaan is for informational purposes only. It should not be considered legal or financial advice. Tiaan is not a financial adviser. You should consult with a financial professional to determine what may be best for your individual needs.

Tiaan does not make any guarantees or other promises as to any results that may be obtained from using his content. No one should make any investment decision without first consulting his or her own financial adviser and conducting his or her own research and due diligence.

Please always only invest within your means and do so responsibly. If you have any questions feel free to contact him via the social media buttons below.

Tiaan Wolmarans
Tiaan Wolmarans is a cryptocurrency investor and trader, airplane pilot, musician, and writer. Disclaimer: The information presented by Tiaan is for informational purposes only. It should not be considered legal or financial advice. Tiaan is not a financial adviser. You should consult with a financial professional to determine what may be best for your individual needs. Tiaan does not make any guarantees or other promises as to any results that may be obtained from using his content. No one should make any investment decision without first consulting his or her own financial adviser and conducting his or her own research and due diligence. Please always only invest within your means and do so responsibly. If you have any questions feel free to contact him via the social media buttons below.