Bitcoin Forum

I have lately seen a lots of posts regarding how Binance has introduced trading in Chinese P2P pairs even when BTC exchanges are completely banned by China. The truth is no exchange is operable in China. Binance shifted it's headquarters from China to Malta back when China banned Cryptocurrencies here is the link to Wikipedia page which verifies the fact : https://en.wikipedia.org/wiki/Binance

It clearly states that:

So it doesn't comes under the jurisdiction of Chinese Law so there is no need of any Chinese Government permission required by them to operate in CNY p2p pair. It's the people who have to be worried regarding their legality. It's for those people who have started thinking that China has relaxed it's cryptocurrency Laws a bit.

I think the point of contention for some is that Binance was founded in China by CZ but due to the regulatory pressures, moved to Japan and then again due to FSB hard line stances against exchange (they have laid down their own regulations) Binance then suddenly moved to Malta wherein they are welcome because the country is really attractive back then and still is at this point.

So for some this is a bitch moved by Binance (moving from one country to another to get away) and this is the main reason why many are surprised by CZ decision to open up a P2P trading recently in China, just saying.

Yeah Malta is an absolute Tax Heaven and along with that pretty lenient  with most of the regulations of companies. This is the reason why they chose Malta instead of any other Country. While searching for this I got to know that even Bitfinex operates in Hong Kong but it is registered in British Virgin Islands which once again is a country with lenient Regulations and basically a Tax Heaven. Huobi is operable chiefly in Singapore so basically no Exchange operates in the Mainland China due to Restrictions and this is definitely not bitching it's just safe tax planning.

Yep, they aren't registered in China due to their much higher taxes and other regulations, while Malta over the last couple of months has seen a lot of development and has become a crypto haven with their low company taxes and their crypto-friendly government.

It's pretty good news now the exchange is once again able to be used in China, it'll probably quickly climb and become the biggest exchange there, and BNB holders are going to be very happy.

Don't forget about World’s Second Largest Crypto Exchange OKEx Moves To ‘Blockchain Island’ Of Malta (https://cointelegraph.com/news/worlds-second-largest-crypto-exchange-okex-moves-to-blockchain-island-of-malta). Others call it a bitch moved because that time Binance is not yet the top crypto exchange, but now it seems that the move was just pure business strategy.

@timerland - I agree, we all know that Chinese have a deep pockets as far as investing their wealth in crypto its that the government want's to control everything. But the move will definitely open the market again for the Chinese so a win-win specially for CZ.

Though Binance is already transferred in Malta but the CEO of binance remains to be Changpeng Zhao a Chinese - Canadian national. If we talk about ownership since Changpeng Zhao is a Chinese and he owns binance together with some chinese this would mean that Binance is still a Chinese Exchange since it is operated by the Chinese. I do believe that it is not the location that determines the exchange but rather it is the owner. Still for me Binance is a Chinese Exchange operating in Malta.

And most of Binance's employees are chinese and for sure most of them are migrated to their headquarter at MALTA.
I think they had moved in Malta because for me, laws in Malta that about cryptcurrency are not so strict compare it to some very strict when it comes to cryptocurrency.

I have a question, it is legal to have some job about cryprtocurrency if you are from China? But you are working remotely, let's say the main office of your company is located from other country.

Binance can be considered a private property that doesn't fall under the legislation of the government of China. We can all see that when Binance decided to move toJapan after China decided to issue regulations that ban crypto in the country. It's kinda ironic how China declared a ban on crypto but China is one of the strongest countries in mining bitcoin.

It's always been clear that your jurisdiction is where your legal entity is registered. So Yeah, for Binance, it's the Malta jurisdiction. However, we all have seen how even the US can pursue companies outside their jurisdiction, simply because they allowed US citizens.

I'm not sure how it works with the law right now, but pretty sure China can exercise its right to extend that ban on Chinese citizens even outside its borders. It's all been fine and dandy for now, but if the state decides to go down the route of the US, you can be sure Binance will withdraw all these options.

I'm wondering what is the implications for them when they start accepting payment through Alipay & WeChat. It must be a massive move for them, considering lots of Chinese use those digital wallets.

It seems like it's going to be a matter of time before Binance cracks another egg and starts accepting payments from different providers regardless of where they're based.

Yes, it is! It doesn't matter where it is located.

7-eleven has its headquarters in Dallas, but it's owned by a Japanese company.
Holiday Inn operates in the US but it's owned by a British company.
Bitstamp is located n Luxemburg but it's owned by Slovenians.

The moment Zhao‎ makes a mistake and angers a few people in the CPC you will se what kind of exchange Binance is.

as far as i can tell there ha never been any "ban" on cryptocurrency "trading" in China. the only thing they have ever banned was ICOs because of obvious reasons (being scams and all that) and also they closed down the Chinese exchanges which were laundering money more than anything else.

No not at all you are absolutely wrong. The location of the owner of exchange doesn't determines the exchange's nationality. A company and it's holder are two separate legal entities. I don't know what you personally feel and i don't think that's important. What important is what actual legal sense is. Even google has an indian ceo does it makes google Indian? This is the first rule of corporate setup. The owners and company are to different persons. And the existence of owners doesn't affects the existence of company. I understand china being inception point of binance it can be confusing. But truth is binance is a Malta exchange Operating all over the world.
Yet again the same answer no matter who own's it. In such cases we call it a domestic company with foreign investment. I am speaking this in strict legal sense. As per you cases all companies are companies of where they are registered. Having a headquarters constitutes a principal place of business. Which means the country may say the exchange not to operate in their country but cannot challenge their existence over the globe. While if it's registered in the same country they can scrap the whole company up at once.

I made a mistake in thinking that somehow Binance has opened back an operation in China when what they are doing is just to open their doors for Chinese to do P2P trading. I am sure that Binance has sought some clearance with this from officials of China government otherwise they can be sued for accepting business from China citizens akin to what US is prone to do once a US citizen can be involved in doing business with a platform not allowed to. Just wondering how taxes of the revenue/transaction can be handled with this arrangement...this is really an interesting development worth watching.

That is what you can call globalization, and technically, glocalization of business such as outsourcing the business or right now, the binance, basically it doesn't matter where it originates, what matter is the person handling it or an entity doing their best to make the market stable such as the binance even though it was being related to china, we can already see how good it performs in the market right now.

everybody know binance is not china exchange as the country has stop every crypto exchange since 2017 and why binance move to malta where its headquarter is right now and china is not in anyway giving second thought about giving any exchange privilege now .

Actually this is not how it happens. In online mode they are not offering their services to chinese citizens they are offering their services in CNY trading pair and this service is available for anyone. So Binance cannot be sued because they are operating in ordinary course of business not expressly asking citizens of china to come to their exchange. Secondly as binance doesn't falls in jurisdiction of China they cannot subpoena Binance best they can do is subpoena their CEO but even that won't help as he would say that it wasn't he who broke the law it's their company which is a separate person. These things are done by teams of attorneys, accountants and consultants after rigrous brainstorming. Don't you think Binance would have done due diligence before doing any such thing?

Binance is not tangible property like Holiday Inn. It is intellectual property which is equally accessible throughout world. So your comparison doesn't make any sense.
Moreover, OP is not addressing the concern regarding ownership of Binance. He is simply answering how Binance can operate in China without taking approval from Chinese authorities because it is legally located in Malta and can create P2P network for any country.

Malta Singapore or Estonia makes best opportunity for blockchain investors by using it Binance team utilise the opportunities and invested their fund on Malta.
How were the industries based from the China only. Binance uses might be happy for a but if you see it practically there Chinese people only.

This sounds like a fair point, but it does not explain why Binance had to shut down services for people from China for a while to figure out the legal grounds of their activities. I cannot find any articles proving that this really happened, though, so perhaps something got mixed up in my head. Anyway, it's cool that Binance is available, but if people will be prosecuted if they use Binance in China, this is not cool. I don't think that Binance would do such a thing, though. From what I am reading, it seems that Binance is legal for Chinese citizens if they use WeChat or AliPay to purchase cryptocurrencies... It's all very confusing, though.

they just move the location but its still a Chinese exchange, the Chinese are using it and its owned by Chinese. they also have binance.us but its still Chinese. sooner you wouldn't find anything related to crypto that isn't owned by Chinese. you are left with few choices and force to use one of theirs.  ;D  It looks like they are going to win again in crypto space.

CZ is Chinese guys and the fact  that  the heard quarter is  not in China does not mean is not  a Chinese exchange. The  company  was founded in China and moved to Taiwan  because of  judicial  law in China. Ask your  self why Chinese government   are involving CZ in their National  digital  currency. You have a point but i still classify Binance  as  Chinese Exchange.      

Didn't realise this when I posted earlier but it seems Alipay at least has made a preemptive move. See this post on their official Twitter:

https://twitter.com/Alipay/status/1182193887835672578

"If any transactions are identified as being related to bitcoin or other virtual currencies, @Alipay immediately stops the relevant payment services."

So, that scuppers Binance pretty quickly, or at least is a warning shot to users who might think they could attempt Bitcoin buys through Alipay. I mean, of course Jack Ma wants to be on the Party's good side!

Tell that to BTC-e,  there was an ocean and two seas between them and the US and that didn't mean anything in the end.
The company is run by a Chinese with Chinese nationality and a Chinese team, you can eat peking duck in Moscow, it's still a chinese dish :P


Which is Chinese....proving my point again...


How tangible were btc-e servers?  ;D


Lol, that made me laugh, you really believe in unicorns, do you?
China doesn't care about it or far more likely they are already running the exchange themselves.
Have you seen what happens to Chinese people that are making the CPC mad? Meng Hongwei? Does it ring a bell?

Oh Stompix seriously I have to explain it all?  ;D Can a Chinese dish buy property in it's own name? Can Chinese dish sue people and get sued? Does Chinese dish pays its own taxes? Better compare it like this two Chinese people go to America and give birth to a Child. You know what that person's nationality is? He is an US CITIZEN. Same is the case with companies they are artificial persons.
Two chinese met in USA handled the baby themselves! Proving my point again.
Chinese like the baby until He was about to take birth in China. But well he did in USA.
[/quote]
Oh so you are saying Xi Jinping is calling back that baby home to pay Taxes? Oh Stopmix stop believing fairy tales businesses are not as straight as they seem to be.

Oh yes and don't give me that lame excuse that baby once took birth in China and then went to USA. Simply assume he took up American citizenship and gave up Chinese.  :)

Why do we have to go into babies comparison when we have a real situation with the same stuff at hand.
And exchange btc-e, located in a country far away from a country which it did not serve, the USA that got nuked.

http://justiceservices.gov.mt/DownloadDocument.aspx?app=gt&itemid=768&l=1

1.      The Parties undertake to afford each other in accordance with the provisions of this Treaty, the widest possible measure of mutual assistance in criminal proceedings.
 2.      Such assistance shall include:
(i)conducting inquiries, tracing of assets, searches, freezing and seizures; 

I only talk about facts, you talk about fairty tale scenarios with no evidence other than your wishful thinking...

It's an extradition treaty between China & Malta, How in any sense does it proves that Binance is a Chinese exchange? Binance was once a Chinese exchange but not now absolutely not now merely because it is providing services to people of China? it's providing services to people all over the world? Oh Please tell how do you say it's a Chinese Exchange? Please state the facts about it.

First
It's not an extradition treaty, Malta has no extradition policy with China.
Again, I urge you to read and understand before claiming stuff:


Second, what kind of company was Binance, Chinese,  then Taiwanese, then Japanese then Maltese...oh and it has a headquarter also in Bermuda and Binance Jersey is located...guess where...Jersey so that would make Binance what?
A Maltese pirate with a jersey and bermudas?  ;D ;D ;D

It is own by a chinese, it has chinese employees, it's chinese. End of the story!
The moment China decides it wants to take a pick into it or seize the entire business, every country that has a treaty with them will have no choice but to obey that treaty. This is a fact supported by ratified documents. Yours ????

This document you presented doesn't prove a thing it says that in event of a criminal proceeding Malta would exchange information as necessary for completion of the proceedings and gives an exhaustive list of all the assistance it provides. Have a look at this : http://www.fdi.gov.cn/1800000121_39_4814_0_7.html#_Toc381707458 (http://www.fdi.gov.cn/1800000121_39_4814_0_7.html#_Toc381707458)

Binance clearly comes under this as it is incorporated outside China.
Moreover, Binance is not expressly providing any services to Chinese Citizens. It is just providing services in general to the world an Chinese people are a part of the world. So even this is not applicable
This fact is supported by the Company Law of China. Which defines every company. So if Binance is not a company of China no Chinese law shall apply on it. The best Chinese government could do is call back all their Chinese Citizen from not working in such a company. I think such employees would have already been prepared for this since day 1 when they came to work for Binance knowing the whole crypto market is banned in their home country

I give up, it's clear that you don't want to have a discussion you're bent on twisting facts just to prove something
I gave you a treaty between Malta and China that clearly specify that in the event a business is found to be harming the other party, the country where the company is located can initiate freezing and seizures of assets on request. Zhao is a chinse individual, the rules and the treaty applies to him and any business he is involved with.

In order to contradict me you come with...what?
Company Law of the People's Republic of China ???
What does this have to do with Binance? Oh, it's now a Chinese company? Or it is based in China?  ;D ;D


Seriously bro, learn to read, take a few minutes to understand, and then type.
And remember, if it quacks in Chinese, it's a Peking Duck.  ;D

Thank you for sharing information about Binance exchanges, in fact I just found out that the Binance headquarters is in Malta. I think Binance
headquarters in China, because the owner of Binance is Chinese. Apparently my guess was wrong all this time, but in my personal opinion
Binance is still chinese exchange because no matter where their headquarters is most important who is the owner of Binance. I am amazed by
the figure of Changpeng Zhao, he did a great job, Binance is one of best exchanges cryptocurrency in the world. Many of the advantages
of Binance that make it liked by many people, which I like most from Binance display is complete and easy to understand. And the important
thing is there is no KYC procedure in Binance.

Yikes... It this a foreshadowing of things to come? We've already seen issue with China and crypto-currencies previously although they have taken a more fairer approach to things in the recent years.

If China's second biggest payment processor is being coaxed into not providing services to crypto exchanges, could that mean the Chinese government would be pressuring all big payment processors (like WeChat for example) to cut ties with Binance and other exchanges?

Sadly must agree, it is and will be chinese exchange no matter where headquarters moved.
Is it safe to use? That is biggest question here. For sure not store there BTC for long, its a risk like on all exchanges but additionally watch out becauser of the above.

You really shouldn't store cryptos in an exchange for long term, it's an exchange and not a wallet. No matter how you feel secured about the exchange, the vulnerability is still there.

I guess if this really pushes through and we feel there's something shady then it's time for us to decide whether to continue or not. For the meantime, let's see what will be CZ's next move.

but it was true that the origin of binance was established in China, after that because there was a Chinese regulation issue which prohibited BTC binance from moving to Malta and continued to grow until now,
the history of binance at the beginning cannot be forgotten, because after all binance was born in China, so it is actually reasonable and it doesn't matter if binance is indeed a chinese exchange.
different points of view don't matter as long as the point is true and has a reason.

Well It's pretty clear who doesn't wants to have a discussion. ;D I showed you Company Law of the People's Republic of China because it doesn't falls under it's definition.
Binance was once created in China then dissolved and registered in Malta. Either you are saying that Malta falls in Jurisdiction of China for which I would say you should refer world map or either you are saying that a Binance was so stupid that it didn't do any legal compliance to dissolve in China and just surprisingly showed up in Malta the next day  ;D and if you seriously think one of these is true I find it really funny. You think Binance is so stupid?? ;D ;D It's pretty clear who needs to learn to read first.

You should say that Binance is controlled by Chinese( CZ's team), but it is worldwide Exchange site.

I would disagree with this submission. For the fact that it is not based in China does not remove the fact that its a Chinese business because we have seen nationals of some countries establish businesses in other countries. Now if the majority of the shareholders are Chinese nationals, irrespective of where the business is located, it will and still remain a Chinese business because should in case the individual decides to sell his stake in the business and return home, its still going to be a form of capital inflow to China.

Another thing to note is that, for the fact that you are operating in another territory does not mean you are not covered by the laws of another country. For instance, if a company operating outside the United States should offer services to the citizens of United States, you are by default covered by the applicable laws of that country regarding the kind of services you are offering which is why you see several gambling sites or exchanges and even ICOs specifically ban US citizens and the same thing applies to China. Now why would anyone want to do a China Pair option if not having the mind that Chinese citizens would patronize it.

You are close! The problem is that "Chinese Exchange" can have 2 meanings.
And the fact it's owned by somebody born in China makes too many say it's a "Chinese Exchange" confuses the ones that don't know (nor care!) about the ownership and think about the laws the exchange it has to obey.

"Worldwide exchange" is not really correct either, because it has moved the operations to Malta exactly because of it lax laws, because it doesn't obey the laws of all countries.

I do not think Chinese is the owner, but where the company was founded. If binance is located and operating in China, then it is true and it can be said that binance is a Chinese exchange. But if binance is in Malta, then it is Malta exchange even though the owner is Chinese.
What's important to me is, binance can be used by everyone and globally. This is a good exchange. We don't need to argue about the country of its owner.

If you really disagree with what I am saying then better have a look at the concept of shell companies operating around the world and how these shell companies are used to change the residential status of domestic companies. Moreover as far as it is concerned towards providing services even Bitcointalk.org is providing it's services in China so maybe it can also be sued and all Chinese laws should apply on the forum too? It's not how things work over the web. you only obey the rules of country you are registered in.

China was once a big market and a supportive nation for Cryptocurrency and related activities. Without China bitcoin might have not grown high during the early days of its usage. At some point it opposed the usage of cryptocurrencies and bitcoin stating it was causing devalue of their traditional currency. Based on such issues Binance moved to Japan and nowtit has more regional support as it has established in different countries.

I think this depends on the jurisdiction and law of China.  If Chinese government have no jurisdiction over a country, they cannot implement their law.  So these people who are stationed on other country where Chinese government  have no jurisdiction have all the freedom to do what they wanted to do about cryptocurrency.

I think it is neither Chinese exchange nor Malta exchange, it is a private exchange owned by a Chinese Citizen whose headquarter is in Malta.

What kind of opinion is that, if someone is starting a company outside the country of his birth and registered elsewhere how can you call that company originated from the country of his birth  ::). Changpeng Zhao is settled in Vancouver, Canada and studied in Canadian universities and you still think that binance is a Chinese exchange  :P. If you know his history you will not tell this as his father exiled from China and probably will not be going back.

Yes I think it's legal because china hasn't expressly said that Cryptocurrencies and dealing in them is banned. It has only banned exchanges present in their country and does not has any sort of punishment for those who violate the law. Moreover when the exchange is located in an altogether different country charges of any law intervention are even low.

Binance exchange publish in Malta country but we can use Binance for every country in the world, but for China depend on how their government with exchange market like binance, legal or not. United Stated have legal for using binance exchange where have launching Binance US exchange, China have many investor like for investing their money in bitcoin and altcoin.

It’s good that Binance develops its network locally, as well as creates different stable coins. I think that this is the best development strategy for exchanges, which is at the moment.

Binannce is an exchange come from Malta I think and not a Chinese exchange, although the owner like like Chinese I think Binance located in Malta, if Binance from China maybe have banned last three years when China banned all bitcoin and altcoin transaction in their country.

They're Chinese-sy at least. Of course they move away from China to make sure they can do their IEO pump & dump without any problem.


What good comes from creating a hundred of stable coins? It only fractures the market, especially if you don't offer anything new. Even if Binance create a new stable coin, it will be the same lack of transparency and trust issues.

So CZ first time build exchange market in China before move to other country, Best ideas with Binance exchange move to one country for other country for promoting how fantastic investment with hundred altcoin kinds listing in Binance, move one country to other country I think best ideas how to get many investor each country have stay by Binance owner, I think Binance located in China because CZ look like Chinese.

Binance moved out of China a long time ago. They have offices in Hong Kong and Japan and Malta was a later move.
Crypto though banned is china, chinese people still are the one of the largest traders of cryptocurrency. Chinese are the largest P2P traders of crypto.
The deals happens with the platforms like Wechat and Alipay which are all in one social and financial apps. Binance did wanted to tap that market and provide an easy platform for both sellers and buyers with some juicy rates but it's involvement did raised concern in China.

I think there have been some cryptocurrency ban not just on ICOs alone. Why did they moved if not a certain ban was lifted back then?
They are forced to move from China to Japan and no to Malta due to legality issues on each country

I think the one that says the binance exchange place is China is very racist, it shouldn't be like that, the CEO of the Binance exchange site only looks like a Chinese person but the Binance exchange place is no ban from China.

Oh wow. My bad then, I was actually really confused about binance and the Alipay issue, because I thought China approved then but then later on retracted their approval by making sure Alipay can't help them.

So, I guess they are a registered exchange and they can operate in China, even if they have no license and permission from the government? That's more lax then I thought.

I wonder what China is going to do to try and ruin Binance, they definetly don't like the company...

Wait a second. What? Although Hong Kong had a few things separated from China (infrastructure, legal system), it's still part of China as far as I know. Yeah, it's not governed directly by them but indirectly it is. Have you heard "All roads lead to rome"? Well, if you backtrace the way Hong Kong works as a country, you'll get to China pretty easily even with their own money and passports and everything.

Binance was first initiated in Hong Kong, but it's been moved to Malta last year as a safe move of its headquarters due to the strict rules China imposed. Here's more information JFYI: https://www.maltatoday.com.mt/business/business_news/93170/why_world_leader_crypto_exchange_binance_moved_to_malta#.Xap6OhhRU0M

Who care whether Binance is or is not a Chinese Exchange platform?  The safety of an exchange platform is the most important aspect of every exchange platfom rather than finding out which country the platform belong to. So far as exchange platforms serve its purpose in the crypto ecosystem, the location of the developers of the platform will not be necessary..

Its founded in China what else could you think that exchange is besides it s Chinese exchange. A lot of people hate Chinese I get it. But I wouldn't expect a Chinese company will deny being Chinese, we don't normally see that because they take pride of it.

Is this for tax that Binance will really be denying it being Chinese exchange?

I think that china has actually relaxed their cryptocurrency law a bit, and reason being that they have their own agenda of creating cryptocurrency also, and once the ambitions comes in, it will automatically kill the way they go against cryptocurrency, just like the way Facebook was blocking every cryptocurrency project then, but since they started introducing their own Libra, I think they have not blocked crypto pages that much.

Everything you said here is correct, binance already moved their headquarter to china, but I thought that huobi is from china and domiciled in china just like Coinbase is owned by a US citizen and also domiciled in US? I am surprised you said that there is no exchange operating in china directly for now, but I think huobi does.

Since it is not bound by the law of China and it is owned by a private entity, it is neigther a Chinese exchange or a Malta exchange but rather a private exchange, founded in China, and stationed in Malta. 


You can just answer the question if China have controlled over this exchange, if no then it is not.  That simple.

To build a company, they must follow the jurisdiction of the country where the place of business was created. That way because they are not within the territory of China, they do not need to obey the jurisdiction of China. it's just that CZ is a Chinese citizen so CZ still must follow the jurisdiction, in this case the transfer of citizens one way. Although the country of China prohibits the exchange of bitcoin, but I have not heard the news of the penalty of users who use bitcoin.