Binance CEO Changpeng “CZ” Zhao has dismissed recent rumors suggesting that China holds a significant reserve of Bitcoin, calling the claims “unsubstantiated” during a public statement on Nov. 21. The rumors, which circulated widely on social media, alleged that China had amassed billions of dollars in Bitcoin, sparking debate over the potential implications for the global cryptocurrency market.
CZ clarified that while China confiscated Bitcoin and other cryptocurrencies in several high-profile cases, including the 2019 PlusToken scam, there is no evidence to suggest the government has retained these assets. He emphasized that confiscated cryptocurrencies are typically auctioned or sold, as is standard practice in such cases. “There is no factual basis for the claim that China holds significant Bitcoin reserves,” Zhao stated.
The rumors surfaced amid growing speculation about government involvement in cryptocurrency markets. China has maintained a stringent stance on cryptocurrencies, banning trading and mining activities while pursuing the development of its central bank digital currency (CBDC). Analysts noted that the notion of a Bitcoin reserve contradicts China’s regulatory approach, which focuses on limiting private cryptocurrency use in favor of state-controlled digital solutions.
Zhao’s remarks reflect Binance’s ongoing efforts to address misinformation in the crypto industry, particularly as regulatory scrutiny intensifies worldwide. The incident highlights the challenges of navigating a rapidly evolving market where rumors can impact investor sentiment. CZ urged the community to rely on verified information and remain cautious of unverified claims that could lead to market distortions.
