Binance, the world’s largest cryptocurrency exchange, reportedly facilitated a jaw-dropping $90 billion in crypto assets trading within a month in China, defying the crypto ban imposed by the Chinese government in 2021, as revealed by Wall Street Journal’s senior correspondent, James Cheng. Despite facing previous criticism for operating within China’s restricted market, Binance continues to operate and execute substantial trade volumes.
Binance, the world’s largest crypto exchange, was to leave China when the country made cryptocurrency trading illegal in 2021. Two years later, users traded $90 billion of cryptocurrency-related assets in China in a single month.@kowsmann @ceostroff https://t.co/Tsl64U2d4F
— Jonathan Cheng (@JChengWSJ) August 2, 2023
According to a recent report by the Wall Street Journal, Binance managed to sustain its operations in China despite the nation’s strict ban on cryptocurrency trading. The reported $90 billion worth of crypto transactions represents an impressive 20% of the global trading volume for that month, excluding trades made by a select group of large traders. Most transactions involved futures contracts tied to cryptocurrencies, banned in the United States.
Although Binance’s CEO, Changpeng Zhao, and the company claim to have left mainland China during a regulatory crackdown in 2017, the exchange has been in the spotlight due to suspicions of operating within the restricted market. Recent reports by mainstream media have shed light on Binance’s continued presence in China, drawing further attention and scrutiny from industry observers. A company spokesperson reported, “The Binance.com website is blocked in China and is not accessible to China-based users.”
While Binance navigates its operations in China, it faces intense scrutiny from regulatory authorities in the United States. The Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Department of Justice (DOJ) have all been investigating the crypto exchange for potential violations of money laundering laws and sanctions.
Binance’s compliance and transparency practices are under intense scrutiny, with a possible lawsuit looming. The outcome of these regulatory investigations could significantly impact the exchange’s operations on an international scale. As the situation unfolds, Binance’s actions and position in China’s crypto landscape will undoubtedly remain subjects of interest among investors, regulators, and the broader crypto community.
