Crypto exchange legalization in China is not true says Binance CEO

Binance CEO Changpeng Zhao has clarified that rumors circulating about the "Legalization" of crypto exchanges is simply misleading.

Not a crypto exchange license but a generic business registration.

On Oct. 30, an analyst claimed that a photograph of a cryptocurrency trading license issued by the Chinese government has leaked, indicating that crypto exchanges are allowed to operate within China.

Zhao and other investors based in China including Primitive Crypto founder Dovey Wan said that it is a basic generic business license containing the phrase "Trading services" and that it does not represent a crypto trading license for local companies.

' It's lacking a BASIC understanding of corporate law in China.

China's blockchain initiative cannot be ignored but it is overhyped.

The blockchain initiative of China is expected to solely focus on permissioned ledgers or blockchain networks that are centralized to a large extent, which are structurally different from existing public crypto assets.

"China's 'National Blockchain Initiative,' no matter what it ends up to be, digital RMB or what, is NOT a hoax.

Still, industry executives argue that the pro-blockchain stance shown by the government of China will place significant pressure on the U.S. and other major regions to adopt similar policies, which could have a largely positive impact on the sector.

Major crypto markets in Asia in the likes of Japan and South Korea have also started to adopt clearer regulatory frameworks to govern cryptocurrency exchanges, paving a pathway for long term growth for startups.