Binance CEO weighs in on the notion of offshore crypto businesses

Binance CEO Changpeng Zhao tweeted: February 19th Suggesting that distinguishing between onshore and offshore operations constitutes a false distinction.

Zhao posted the following in response to Kraken CEO Jesse Powell.

“[Powell] uses the term offshore frequentlythe term offshore is overly narrow-minded, self-centered, devoid of a broader perspective, and [is] It doesn’t help the development of our industry. “

Zhao claimed that all companies operate onshore in relation to their country. He said it was “arrogant” to make such a distinction, adding that believing in the superiority of homegrown companies is not a panacea for the crypto industry.

He also pointed out that such thinking clearly fails to prevent onshore fraud.Zhao observed that FTX.US failed alongside FTX, but compared to the US , despite the fact that it was an onshore company with many American executives.

Zhao unequivocally denied that this kind of sentiment is only found in the United States, saying it is seen in Asia as well. Because there are Chinese and Japanese words (laowai and gaijin) used to derogatoryly refer to foreign businesses. ” Each).

Zhao’s comments specifically criticized Kraken CEO Jesse Powell’s February 17 statement in which he resigned. Mr. Powell lamented that U.S. regulators did not listen to his complaints about offshore companies and gave them an excuse. program of the month.

Mr. Zhao seems to be aware of the seriousness of Mr. Powell’s situation, writing in one tweet: [this] so directly. No harm.

Despite Zhao’s feelings about onshore and offshore business, his company now has to meet international regulations. Binance’s U.S. stablecoin his partner Paxos announced on February 13 that he will stop issuing Binance USD (BUSD) for regulatory reasons.

Report from The Wall Street Journal February 15th Furthermore, it suggested that Binance would pay fines to US regulators to settle regulatory investigations. Zhao added on Feb. 17 that Binance has no plans to delist US-based cryptocurrencies, but will instead cut back on US investments and bids, and instead seek permission first.

Binance.US is also facing scrutiny over its relationship with trading firm Merit Peak.