Binance’s users in China traded more than USD $90 billion in a single
month despite cryptocurrency trading being illegal in the country, the
Wall Street Journal reported yesterday (Tuesday), citing the exchange’s internal documents and
former employees.
According to the WSJ,
most of Binance’s trading volumes in China, which accounted for 20% of its global volumes, came from spot and futures trading. According to the media publication,
Binance had 5.6 million users in China as of May, out of which about 900,000
were active.
Besides China, South Korea,
Turkey, and Vietnam are the other biggest markets for Binance, the publication
reported. The WSJ also noted that about 100,000 Binance’s users in China are
classified as politically exposed persons (PEPs) or people
holding influential positions in government.
In 2021, China imposed
a ban on all
cryptocurrency trading in the country. Earlier in 2017, the country banned initial
coin offerings (ICO). The ban affected Binance, which was founded in 2017 in
Shanghai. However, according to the latest report, the exchange found ways to enable
its users to bypass the ban.
Binance reportedly
directed users to
websites with Chinese domain names before redirecting them to its main website.
However, the exchange has refuted the claims. According to people who spoke
with the WSJ, Binance maintains that its website is blocked from users in China.
Binance’s Regulatory
Struggles
Elsewhere, Binance is
under scrutiny in the US. The exchange
