Crypto exchanges in China not “legalized” says Binance CEO (source: Changpeng Zhao Twitter)
Not a crypto exchange license but a generic business registration
On Oct. 30, an analyst claimed that a photograph of a cryptocurrency trading license issued by the Chinese government has leaked, indicating that crypto exchanges are allowed to operate within China.
However, Zhao and other investors based in China including Primitive Crypto founder Dovey Wan said that it is a basic generic business license containing the phrase “trading services” and that it does not represent a crypto trading license for local companies.
“Not such thing as ‘cryptocurrency exchange legalization’ by a simple EDGAR equivalent registration and generic business license.”
“Looking up Chinese EDGAR Database equivalence (screenshot attached) there are many “digital asset trading and service companies have ‘registered’ and ‘licensed.’ It’s lacking a BASIC understanding of corporate law in China.”
China’s blockchain initiative cannot be ignored but it is overhyped
The blockchain initiative of China is expected to solely focus on permissioned ledgers or blockchain networks that are centralized to a large extent, which are structurally different from existing public crypto assets.
Considering that most major over-the-counter (OTC) trading platforms based in Hong Kong that are known to facilitate trades for investors based in China have offices in Beijing, the local government may not strictly crackdown on OTC desks in neighboring questions.
Other than that, the blockchain initiative will primarily benefit blockchain-related businesses,