Are the China rumors true?
Rumors regarding the China crypto have been spreading. The word is that some Chinese cryptocurrency exchanges, including Binance, BitZ, IDAX and OKEx, are in crisis after domestic authorities tightened regulations. JoinD has fact checked these rumors. 1.Binance CEO Zhao Changpeng to be immediately arrested on arrival to China. No Chinese press has substantiated these rumors, but Binance’s Shanghai office was raided during the crackdown. The Shanghai office was mostly occupied by Binance partnering companies mainly in charge of customer service. The Chinese authority’s regulatory action didn’t affect Binance’s business. 2.BitZ CEO on the run According to Chinese cryptocurrency media Blockeye on Dec. 2, BitZ’s CEO has already fled the country. The report cited a company official saying that since the previous CEO left for its competitor Bitgeet in September, a large number of its employees have departed the company. Founder and co-CEO Chang Shun has left China. BitZ’s crisis wasn’t a surprise. Hong Kong’s Securities and Future Commission on Nov. 6 said it will criminally charge cryptocurrency exchanges within Hong Kong that don’t have a license or that offer cryptocurrency asset futures contracts without the approval of the authorities. BitZ’s business activities under the new framework were in violation of the Hong Kong rules. 3.IDAX CEO ran away with the coins This is an issue repeatedly dealt with by JoinD. According to Chinese media, IDAX CEO Lei Guorong has gone into hiding with the cold wallets of customers. According to IDAX’s Website on Nov. 29, the whereabouts of its CEO is unknown. The most recent report said 438 IDAX investors have suffered a loss of totaling 52.3 million yuan, which is roughly 8.8 billion won. 4.OKEx is requesting leniency from the Chinese authorities in exchange for making huge investments in the Hainan blockchain special zone According to news report from China on Dec. 1, parent company OK Group recently signed a strategic alliance with Hainan’s Sanya city government. OK Group has agreed to open a digital asset trading lab. The specific amount of the investment was not disclosed. Although it is unclear whether OKEx is asking the Chinese authorities for leniency, one could speculate that it is trying to get in the good graces of the government. OKEx as well as Huobi, another digital asset exchange operator, have created a department within the groups that focuses on winning over the leaders of the Communist Party. OKEx has not been caught in any of the Chinese government’s crackdowns in the last two years. Rumors has it that OKEx and Huobi are hoping to become the first exchanges in China authorized by the government through their close connections with the Chinese authorities. 5.Chinese government trying to buy Huobi Nothing has been confirmed. However, it seems that the Huobi Group and the Chinese government have formed a close relationship. Despite the cryptocurrency market being under crackdown by the Chinese authorities, Huobi officials have been invited to be interviewed by CCTV, the Chinese state broadcaster.