Perhaps reflecting how Binance’s Chinese name “??” means “safe coins,” many Binance users in China said they aren’t too worried about their funds amid the worsening global crackdown on the world’s biggest crypto exchange by volume.
On the surface, this may seem counter-intuitive. Binance is clearly in the crosshairs of regulators from around the world, having been banned in several countries and facing criminal charges in another. Meanwhile, a recent series of regulatory actions by China against crypto activity has rocked the industry overall and contributed to a plunge in crypto prices. For Chinese traders, though, Binance is largely viewed as immune to China’s actions, which they see as the biggest threat to exchanges with operations in the country. That’s particularly true given how the nation’s regulators recently brought a company as powerful as Chinese e-commerce giant Alibaba to its knees so quickly and harshly .
Binance is considered as relatively safe from this type of action due to the company’s decision to move its operations — and the funds it holds — out of the country back in 2017. This distance from Chinese regulators, combined with trading products available only on Binance, is causing traders to look past the exchange’s issues in other regions and prefer it to rivals with operations or executives still in China.