Kofi Mensah Despite the imposed prohibition on cryptocurrency trading in China, Binance users in the country have reportedly conducted trade amounting to $90 billion within a single month, the Wall Street Journal disclosed on Tuesday.
Binance, the world’s leading digital asset exchange, had these staggering transactions carried out on its platform in China, a nation where crypto trading has been outlawed since 2021. The report claimed that this activity rendered China as Binance’s most significant market, responsible for 20% of the global volume, excluding trades made by a certain group of large-scale traders. The source of this information includes internal statistics and present and previous Binance employees.
However, as Reuters highlighted, the Wall Street Journal’s report failed to specify the month during which these transactions took place. While Binance did not promptly respond to a request for further comments, a spokesperson for the exchange, as quoted by the WSJ, stated that the Binance.com site is inaccessible to users based in China.
Despite Binance initially having its roots in China, it withdrew from the country amidst a regulatory crackdown in late 2017. Nevertheless, as a report from the Financial Times in March unveiled, citing internal documents, the crypto juggernaut maintained ties with China several years post its leadership’s declarations of exiting the mainland.
Lately, Binance has been subjected to an intensifying inspection by regulatory bodies worldwide. The Commodity Futures Trading Commission and the Securities and Exchange Commission in the United States have filed a lawsuit against Binance for violating U.S. securities and derivatives laws, and for misappropriation of customer funds.
The U.S. Department of Justice is currently carrying out an investigation to determine if Binance is accountable for money laundering and evasion of sanctions. Additionally, an inquiry for money laundering and regulatory violations was initiated by French prosecutors in June.
Do you believe that Binance continues to operate in China? Please share your viewpoints on this matter in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Binance China Operations
How much cryptocurrency was traded by Binance users in China within a month, despite the ban?
Despite the ban on cryptocurrency trading in China, Binance users traded approximately $90 billion worth of digital assets within a month.
How significant is China’s market to Binance’s global volume?
China is considered Binance’s biggest market, accounting for around 20% of the exchange’s worldwide volume, excluding trades from a particular category of large traders.
Did Binance officially respond to the report about the high volume of crypto transactions from China?
While Binance did not immediately respond to requests for further comments regarding the report, a representative for the exchange was quoted stating that the Binance.com website is blocked and not accessible to China-based users.
Has Binance been under any recent regulatory scrutiny?
Yes, Binance has been facing increased scrutiny from regulators worldwide. The exchange is currently being sued by the Commodity Futures Trading Commission and the Securities and Exchange Commission in the U.S. for allegedly violating securities and derivatives laws. It’s also under investigation for potential money laundering and sanctions evasion.
Did Binance completely exit China following the 2017 regulatory crackdown?
Binance officially left China amidst a regulatory crackdown in late 2017. However, a report by the Financial Times in March, quoting internal documents, suggests that Binance maintained connections with China several years after its claimed departure.
More about Binance China Operations
- Binance Official Website
- Report on WSJ about Binance’s trading in China
- Reuters report on Binance’s operations
- Financial Times article on Binance’s connections to China
- Information on the Commodity Futures Trading Commission
- Information on the U.S. Securities and Exchange Commission
- News about French prosecutors’ investigation into Binance
6 comments
Wow!! $90 billion in a month, that’s some big numbers man. China’s ban ain’t slowing these guys down, huh?
Seriously? china still the biggest market for Binance? how’s that even possible with all the restrictions?
somethings fishy here. Site blocked in China, yet they trade 90 bil? Something doesn’t add up here.
Binace better watch out! regulatory scrutiny getting tighter. dont want another mt.gox fiasco.
No wonder regulators are onto them. Too many things happening in the shadows. Can’t trust these big exchanges.
whew, that’s a lot of crypto. Binance has got its fingers in every pie, even the ones they’re not suppose to touch…