Investment in China: Bitmain’s Return Sparks Questions

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Changpeng Zhao, the CEO of Binance recently announced that his company is on the way to make its very first strategic investment in China after leaving the country back in 2017.

Back in 2017, China enforced a crypto trading ban which more or less resulted in the majority of companies shutting down or relocating their business completely.

According to Bloomberg, Binance’s recent participation in the funding round hosted by Mars Finance was a big giveaway to the company’s intentions. Matrix Port, Ceyuan Ventures, OKCoin and IDG Capital were just some of other names which participated in the funding round.

Mars Finance was created by the Chinese entrepreneur Wang Feng. Feng has been a notable name in the crypto space for a while now and by current estimations, his digital data aggregation venture, HuoXing, is attracting more than 124 000 monthly visits and is ranked around 70 000 in terms of web traffic.

It’s no secret why Binance left back in 2017, many others did as well. This turnaround however, signals a massive growth of interest from the Chinese government. It’s also very obvious that despite China’s stance on cryptocurrencies, the country is looking to play a major role in the upcoming decentralization wave.

A potential investment in China is a wise decision

Binance’s position in the global market also makes it extremely hard to ignore China. The country’s sheer market size makes it almost necessary for Binance to hold a strong position into.

That being said, many experts were still surprised about Binance’s decision to return to China. After all, the possibility for government intervention is very real and from a logistical and economic standpoint, this is a very risky decision.

Yi He, the Chief Marketing Officer of Binance stated:

“We are perfectly aware of the situation. Almost every investment has its risks. Our investment into Mars Finance shouldn’t be looked at as a “crypto investment”.”

From a pure number standpoint, it’s absolutely no surprise that Binance is returning to China. The Chinese trading community is such a large portion of the world’s transaction volume that it’s really no surprise that any exchange is willing to reenter the market.

China is also the world’s crypto mining capital and a number of crypto firms and exchanges like Bitfinex, OKEx and Galaxy Digital, have already set up their strongholds in Singapore and Hong Kong. This is mostly due to the countless logistical and economic benefits offered by these regions.

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