The cryptocurrency market is known for its volatility, and Chinese entrepreneurs are actively navigating its complexities. As mainstream financial institutions increasingly integrate crypto products into their operations, a noticeable trend has emerged: professionals moving from traditional finance to crypto roles, and a growing number of Chinese individuals taking on significant positions in the industry.
From founding major exchanges to leading crypto firms, Chinese figures are prominently involved. This article explores their contributions, challenges, and the evolving landscape they operate in.
Prominent Chinese Leaders in Crypto
Among the most recognized figures is Changpeng Zhao (CZ), founder and CEO of Binance, one of the world's largest cryptocurrency exchanges. Another notable leader is Karen Chen, former president of UBS China, who became CEO of Higgs Technology in 2018, the operator of Coinsuper exchange.
Recent market turbulence has brought additional Chinese entrepreneurs into the spotlight. Zhu Su, CEO of Three Arrows Capital (3AC), played a significant role during the recent crypto credit crisis. Similarly, Flex Yang and Del Wang, co-founders of Babel Finance, have been influential in shaping crypto financial services.
Regulatory compliance remains a top priority for the industry. While Zhao now engages with regulators worldwide in formal attire, others like Zhu Su have faced personal challenges, including threats. The broader context includes tightened global regulations, ongoing crypto credit issues, and major cryptocurrencies like Bitcoin and Ethereum testing key resistance levels.
The Rise of Binance and Changpeng Zhao
Cryptocurrency exchanges operate around the clock, with Binance handling a substantial share of global trading volume. By April 2018, it supported 1.4 million transactions per second and served 6 million users, cementing its position as a market leader.
Changpeng Zhao, a Canadian-Chinese entrepreneur, is the driving force behind Binance. His journey into crypto began in 2013, and after working with Blockchain.info and OKCoin, he sold his Shanghai property to invest fully in Bitcoin. In 2017, he founded Binance, which raised $15 million in its initial coin offering and quickly grew into a industry giant.
Zhao's wealth, closely tied to crypto markets, has seen dramatic shifts. He was named the richest person in crypto by Forbes in 2018, with a net worth of $1.39 billion at the time. By December 2021, his estimated wealth peaked at $94.1 billion, making him one of the world's top billionaires. However, market downturns in 2022 significantly reduced his assets, which stood at around $34.98 billion by August.
Three Arrows Capital and Zhu Su
The collapse of TerraUSD and Luna triggered a crypto credit crisis, impacting platforms like Vauld, Babel Finance, and Voyager. Three Arrows Capital (3AC), co-founded by Zhu Su, was at the center of this storm.
Zhu Su, an alumnus of Phillips Academy and Columbia University, worked as a trader at Flow Traders and Deutsche Bank before launching 3AC. Known for his bold predictions, he once argued that Bitcoin could reach $2.5 million per coin if it matched gold's market cap. He also introduced the "super cycle" theory, suggesting crypto markets would avoid prolonged bear markets.
However, high-leverage trading and circular borrowing led to 3AC's downfall, causing widespread fallout in the industry.
Babel Finance and Its Founders
Flex Yang and Del Wang established Babel Finance in 2018, building it into a global crypto financial services provider with over 500 institutional clients and assets exceeding $7 billion. The company offered lending, deposit services, financing, and derivatives.
Yang, a blockchain enthusiast and early adopter, worked at PwC Hong Kong before co-founding Babel. Wang, a graduate of China Agricultural University, brought experience from ICBC and other financial firms.
Between 2018 and 2021, Babel expanded rapidly, securing $40 million in Series A funding from investors like Sequoia Capital and Tiger Global. An additional $80 million raise in May 2022 valued the company at $2 billion. Despite this, exposure to Luna and 3AC led to liquidity issues. Babel paused withdrawals in June and later hired Houlihan Lokey for restructuring advice.
Challenges in the Crypto Ecosystem
The crypto market has faced significant headwinds since late 2021, including tighter global liquidity, falling prices, and credit crises. The top 100 cryptocurrencies have seen values drop over 50% year-to-date, with Bitcoin struggling to reclaim its November 2021 high of $69,000.
Regulatory scrutiny is increasing worldwide. In Singapore, the Monetary Authority of Singapore (MAS) has pledged strict actions against misconduct in the crypto space and publicly criticized 3AC. Similar trends are evident in Hong Kong, South Korea, and other亚太 regions.
Investors are becoming more cautious. Many are reevaluating risks related to transparency, asset quality, and regulatory compliance before committing capital.
Industry Perspectives and Personal Stories
Long-term participants in the crypto space express mixed feelings. One veteran, who has worked in the industry for a decade, noted that while mainstream finance began embracing crypto around 2018, the market remains chaotic and unpredictable. The rapid pace of innovation—new coins, concepts, and chains—creates constant pressure to stay informed.
Wealth generation is a common goal, but success stories like Zhao's are rare. The industry fosters anxiety, with many professionals feeling overwhelmed by its demands.
Regulatory changes, market crashes, and industry crises have driven some participants to exit. Some have returned to traditional sectors, while others focus on compliant blockchain projects or consulting roles.
Despite the challenges, many remain committed to innovation and adding value to the ecosystem. As Zhao mentioned in a July social media post, maintaining perspective is essential: treating challenges as part of a larger game can help manage stress and sustain long-term engagement.
Frequently Asked Questions
Who is the most influential Chinese figure in cryptocurrency?
Changpeng Zhao, founder of Binance, is widely considered the most influential Chinese entrepreneur in crypto. His exchange dominates global trading volume, and his leadership has shaped industry trends.
What caused the recent crypto credit crisis?
The collapse of TerraUSD and Luna triggered widespread instability, affecting leveraged funds like Three Arrows Capital and lending platforms such as Babel Finance. Contagion risk and opaque lending practices exacerbated the situation.
How are regulators responding to crypto market risks?
Regulators globally are tightening oversight. Singapore, Hong Kong, and other jurisdictions are implementing stricter rules to protect investors and ensure market stability. Explore more strategies for navigating regulatory changes.
Is cryptocurrency a viable long-term investment?
While volatile, crypto has attracted institutional interest and technological innovation. Long-term viability depends on regulatory clarity, market maturity, and broader adoption of digital assets.
What are common risks for crypto businesses?
Key risks include regulatory shifts, market volatility, cybersecurity threats, and liquidity management. Effective risk mitigation requires robust compliance and operational frameworks.
How can investors assess crypto projects?
Investors should evaluate team experience, technology utility, tokenomics, regulatory alignment, and market demand. Due diligence is essential to avoid projects with unsustainable models.
Conclusion
The cryptocurrency industry continues to evolve, with Chinese entrepreneurs playing significant roles in its development. While market cycles and regulatory challenges persist, innovation and adaptation remain central to the ecosystem's growth. For those engaged in this dynamic field, balancing opportunity with risk management is key to long-term success.