Binance Defies China’s Crypto Ban, Records $90B Monthly Trading Volume: Report

<p>

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.</p><p>Crypto Futures Trading</p><p>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.</p><p>Besides China, South Korea,
Turkey, and Vietnam are the other biggest markets for Binance, the publication
added. The WSJ also noted that about 100,000 Binance users in China are
classified as politically exposed persons (PEPs) or people
holding influential positions in government.</p><p>In 2021, China <a href="https://www.financemagnates.com/cryptocurrency/regulation/china-warns-state-owned-companies-about-dealing-with-crypto-mining/" target="_blank" rel="follow">imposed
a ban</a> on all
cryptocurrency trading in the country. Earlier in 2017, the country banned initial
coin offerings (ICOs). 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.</p><p>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.</p><p>Binance’s Regulatory
Struggles</p><p>Elsewhere, Binance is
under scrutiny in the US. The <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> and its Chief Executive Officer and
Co-Founder, Changpeng Zhao, were <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">sued
by the SEC</a> in June for
allegedly operating an illegal crypto trading platform, offering unregistered
crypto asset securities, and comingling customers’ funds.</p><p>Binance is facing
similar charges by the Commodities Futures Trading Commission (CFTC) for
operating what the agency has termed an illegal exchange with a ‘sham’
<a href="https://www.financemagnates.com/terms/c/compliance/">compliance</a> program. Besides that, Binance is under investigation by the US Department
of Justice for allegations of money laundering and facilitating violations of sanctions.</p><p>On
top of that, Binance is facing hurdles in expanding its business in Europe. Two
weeks ago, the exchange <a href="https://www.financemagnates.com/cryptocurrency/binance-drops-license-application-in-germany-amidst-regulatory-challenges/" target="_blank" rel="follow">withdrew
its license application</a> in
Germany. Similarly, in June, Binance announced the decision to <a href="https://www.financemagnates.com/cryptocurrency/binance-to-transfer-dutch-clients-to-local-rival-coinmerce/" target="_blank" rel="follow">exit
the Netherlands</a> and
transfer users to a rival cryptocurrency exchange after failing to obtain a
license in the country, <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">Finance
Magnates</a> reported.</p>

This article was written by Jared Kirui at www.financemagnates.com.