China remains Binance’s primary market despite its crypto ban in 2021. According to internal documents cited by WSJ, the crypto exchange recorded over $90 billion in trading volume from China in May.
Binance, a major crypto exchange, continues to dominate the Chinese market, even after the country’s crypto ban. In May, it saw trading volumes exceeding $90 billion from China alone, as reported by the Wall Street Journal. The bulk of this volume came from futures trading.
Based on data from Binance’s internal platform “Mission Control,” the exchange’s combined spot and bitcoin futures trading volume in May surpassed a staggering $670 billion. After China, other significant markets for Binance include South Korea, Turkey, and Vietnam, as mentioned in the WSJ report.
Binance’s Popularity in China:
Binance, a cryptocurrency exchange founded in Shanghai in 2017, continues to attract millions of users from China, despite the country’s strict crypto regulations. As of May, Binance had 5.6 million users based in China, with around 911,650 actively using the platform, according to their internal system called “Mission Control.” Overall, Binance boasts a massive user base of over 128 million worldwide.
The Wall Street Journal reported that Binance has been relatively lenient in verifying the identities of its users in China. Notably, about 100,000 Chinese users at Binance were classified as “politically exposed persons” (PEPs) – individuals with influential government connections or associations. Traditional financial institutions usually subject PEPs to stricter scrutiny to combat money laundering and illicit financial activities.
Binance’s Strategies to Bypass Restrictions:
After China banned crypto initial coin offerings (ICOs) and blocked Binance’s website in 2017, the exchange continued to assist Chinese users in circumventing the restrictions. According to the WSJ, Binance directed users to visit websites with Chinese domain names, which then redirected them to the main Binance website. This procedure was outlined in an internal document circulated within Binance before the 2021 ban.
Binance’s Response and Communication:
Binance.com is currently blocked in China, making it inaccessible to China-based users. The company spokesperson told the WSJ that the website’s access was restricted, but did not offer further comments on the matter.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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