Binance's Biggest Market Is China Despite Crypto Ban: Report

Investing

Published: August 2, 2023 7:20 am

Last Updated: August 2, 2023 9:10 am

Chinese users contributed $90 billion in trading volume on Binance in just a month, making it the single-largest global market for the leading crypto exchange, the Wall Street Journal (WSJ) reported. Binance left China in 2021 after the government banned crypto trading, but the report claims the company has continued to serve over 900,000 users quietly.

China Accounting for 20% of Binance’s Global Trading Volumes

Binance users traded $90 billion worth of cryptocurrencies in China in a single month, even though the crypto exchange allegedly left the market when the government banned the trading of crypto assets in 2021. According to WSJ sources, this figure made China Binance’s largest market by some distance, representing 20% of its global volumes.

The WSJ report said the significance of the Chinese market for Binance is openly discussed, citing internal company documents. Despite cryptocurrency trading being prohibited in the country, the exchange’s investigations team allegedly closely collaborates with the local authorities to identify potential criminal activity among its over 900,000 active users.

The data, disclosed for the first time, reveals how the world’s largest crypto exchange continues to operate in a market from which it, along with other crypto trading service providers, was forced out two years ago. Binance reportedly allowed China-based users to bypass crypto trading restrictions by directing them to different websites with Chinese domain names before rerouting them to its global exchange site.

“The Binance.com website is blocked in China and is not accessible to China-based users.”

– Binance spokesman said when asked to comment on the matter.

Binance’s Regulatory Challenges in the US and Europe

The new revelations that Binance allegedly heavily relies on China come as the crypto exchange navigates a challenging regulatory landscape in other markets. Notably, last month, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its founder Changpeng Zhao, accusing them of several misdeeds, including illegal operations and the misuse of customer assets.

At the same time, the US Justice Department (DOJ) has an ongoing probe into Binance. The investigation started in 2018 and is focused on the company’s compliance with US anti-money laundering regulations.

Meanwhile, the cryptocurrency exchange exited multiple global markets recently, including Canada, Cyprus, the Netherlands, and the United Kingdom. On the other hand, Binance officially started its exchange in Japan on August 1, marking its long-awaited return to the Asian nation after five years.

This article originally appeared on The Tokenist

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