Binance’s biggest market is China despite a crypto ban in the country: WSJ
As per a recent WSJ report, Binance users exchanged $90 billion in crypto assets in a single month in China despite a crypto ban there.
- The amount of trading activity makes China Binance’s biggest market by far.
- Binance withdrew from mainland China in 2017 following a regulatory crackdown.
As per a recent Wall Street Journal report, Binance [BNB] users exchanged $90 billion in crypto assets in a single month in China, where crypto trading has been prohibited since 2021.
The story did not mention the month when these transactions took place.
The trading activity makes China Binance’s biggest market by far, contributing for 20% of the global trading volume, according to the Journal. It boasts of a 900,000-strong active user base in the country.
The world’s leading crypto exchange regards China as its largest market, followed by South Korea, Turkey, Vietnam, and the British Virgin Islands.
The Wall Street Journal said China has a $80.6 billion futures market and a $9.4 billion spot market for Binance. Next, the futures market in South Korea accounts for $56.9 billion; its spot market accounts for $1.39 billion. As far as the British Virgin Islands was concerned, futures and spot markets account for $5 billion and $12.82 billion respectively.
The exchange withdrew from mainland China in 2017 following a regulatory crackdown.
Despite a worldwide regulatory crackdown amidst allegations of unlawful operations, Binance has successfully bypassed Chinese regulations by directing visitors through other websites with Chinese domain names.
To circumvent geographical limitations, dealers based in China typically utilize a Virtual Private Network (VPN) in conjunction with a digital residency program such as Palau’s RNS.ID.
Binance evading compliance in China?
CNBC reported in March that Binance’s customers in China utilize a variety of ways to avoid the exchange’s know-your-customer (KYC) procedures. Executives and volunteers at Binance revealed falsifying bank papers and addresses as well as manipulating the exchange’s systems as common strategies.
This calls into question the efficiency of Binance’s anti-money laundering measures as well as the platform’s vulnerability to criminal operations.
Binance’s continued presence in China underlines the necessity of securing its market base in the country. The organization is currently facing regulatory scrutiny across the globe that seemingly challenges its survival.
