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If Binance could ride out the regulatory onslaught that followed the FTX implosion, it would be the go-to venue for trading crypto tokens, and Zhao could establish himself as the “acceptable face” of crypto, a section of financial markets that many still regard as the Wild West. In the US alone, financial watchdogs have accused Binance of illegally serving American customers, inappropriately controlling clients’ assets, and disregarding compliance and anti-money laundering standards.
But whether and how its future is resolved will help determine if crypto becomes a part of mainstream finance, or remains a niche industry beloved by those wishing to separate money from the apparatus of state.In an internal text message sent in late 2017, shortly after the birth of his crypto exchange, Zhao issued a rallying call to his employees: “Everything you do should be aimed at increasing our market share,” he said.
Like many young tech companies, it had an aggressive growth culture. “We want to spend 2 per cent of time making decisions, and 98 per cent of time doing them,” Zhao said during an internal meeting in Binance’s Shanghai office a recording of which has been seen by the FT. “Our competitive advantage so far is because we do things, we execute, we get shit done. It’s all about getting shit done.”
Zhao built up a loyal following that defends him against “FUD”, industry parlance for “fear, uncertainty and doubt”. A key part of this following are the so-called Binance Angels, described by the company as “volunteers” who support the Binance community and advance the crypto cause. In footage of the trip seen by the FT, Zhao stood on a beach lined with yachts among roughly 100 Binance employees who unveiled a sign marking the milestone.
Binance said it had made clear to staff that personal social media profiles created “a higher risk for targeted phishing and other social engineering attacks.”Nasdaq-listed Coinbase has also run into trouble with regulators in the US. The SEC sued the exchange in June this year, alleging it violated securities law. Coinbase denies the allegations.