Binance has fired back at reports that their Shanghai office was raided and shut down by Chinese authorities.
According to The Block, unnamed local sources said local police raided Binance’s Shanghai offices and closed it afterward. The exchange platform allegedly had 50 to 100 people working in that particular office. The said raid was reported to be due to China’s ongoing crackdown on crypto-related companies and activities.
China’s financial leaders recently issued a public notice requesting citizens to report businesses said to be engaged in trading virtual assets. Information about these cryptocurrency firms was to be directed to the People’s Bank of China’s Shanghai headquarters.
A spokesperson for Binance has categorically denied the news and stated that the crypto exchange platform doesn’t have an office in Shanghai. The statement echoed CEO Changpeng Zhao’s tweet about offices and headquarters being “old concepts like SMS and MMS.”
According to the company’s spokesperson, Binance is “a global movement.” The people working for the company do so in a “decentralized manner.” Because of the way the company is designed, it has no permanent offices in China. Therefore, the news that police reportedly raided Binance’s offices and shut them down made no sense.
The spokesperson also claimed Binance is being targeted by and in the Chinese media. They pointed out the recent increase in articles portraying the company is a less than favorable light. There were also activities against them as well.
The company is encouraging news sites and media practitioners to verify their “sources” and check if they’re telling the truth or if they’re pushing their own agenda. Binance also stated that it’s focused on developing its blockchain and crypto ecosystems and said it will work closely with governments to ensure users are protected and to expand the blockchain industry further.
Reports of Chinese police raiding and closing Binance’s purported offices quickly resulted in plummeting cryptocurrency prices, with most of the major tokens seeing red.
Cryptos Reeling from Losses
Cryptocurrencies were still reeling from losses as of press time. Bitcoin (BTC) saw losses of over six percent while Ethereum (ETH) lost more than eight percent in the past day. Altcoins like EOS and Litecoin (LTC) also took a hammering. Binance’s own token, the Binance Coin (BNB), dropped ten percent to trade at $16.58.
That’s a major blow to Binance, one of the world’s more active crypto exchange platforms. The company’s 24-hour trading volume currently stands at more than a billion, making it the world’s top two exchanges.