Binance conducted $90 billion worth of monthly transactions in China market, despite being banned – WSJ.

Binance conducted $90 billion worth of monthly transactions in China market, despite being banned - WSJ.

Binance Users Trade $90 Billion in Cryptocurrency Assets in China, Despite Ban

In a surprising turn of events, Binance users in China have managed to trade a staggering $90 billion worth of cryptocurrency assets in a single month, despite trading cryptocurrencies being illegal in the country since 2021, according to the Wall Street Journal. These figures are based on internal data and interviews with current and former Binance employees.

China: Binance’s Biggest Market

This unexpected trading activity has propelled China to become Binance’s largest market, accounting for a whopping 20% of the exchange’s global trading volume, excluding trades made by a select group of large traders.

Binance, the world’s largest cryptocurrency exchange, has its roots in China but withdrew from the mainland in 2017 due to increased regulatory pressure. The company has not yet provided an official comment on the Journal’s report.

It is worth noting that the Binance.com website is currently blocked in China, preventing users based in the country from accessing it. However, this has not deterred Chinese investors from finding alternative channels to trade cryptocurrencies.

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Regulatory Scrutiny

While Binance may be thriving in China, the exchange has also been facing intense regulatory scrutiny in the United States. Both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have taken legal action against the company.

The CFTC filed a lawsuit against Binance, accusing it of operating an “illegal” exchange and implementing a “sham” compliance program. Similarly, the SEC sued Binance and its CEO, Changpeng Zhao, alleging that the exchange artificially inflated its trading volumes, misappropriated customer funds, failed to restrict US customers, and provided misleading information about its market surveillance controls.

Additionally, Binance is currently under investigation by the US Department of Justice for possible money laundering and sanctions violations.

Unstoppable Growth and Resilience

The remarkable level of cryptocurrency trading in China, despite its ban, highlights the unstoppable growth and resilience of the crypto industry. It also underscores the challenges faced by regulators in attempting to control or prohibit this global phenomenon.

Cryptocurrencies have become increasingly popular as an investment asset class, offering individuals opportunities to diversify their portfolios and potentially achieve substantial returns. The decentralized nature of cryptocurrencies, coupled with the growing accessibility of cryptocurrency exchanges and trading platforms, has facilitated their widespread adoption and use.

Despite governmental attempts to suppress cryptocurrency trading, enthusiasts and investors have managed to find workarounds. Whether it be through the use of virtual private networks (VPNs) to access blocked websites or by leveraging decentralized exchanges that operate outside the purview of traditional regulatory frameworks, individuals continue to find ways to participate in this thriving market.

Conclusion

The $90 billion in cryptocurrency assets traded on Binance by Chinese users highlights the immense interest and demand for digital currencies in the country, despite the government’s ban. This phenomenon sheds light on the evolving dynamics between regulators and the cryptocurrency industry, where determined traders and investors seek alternatives to engage in cryptocurrency activities.

As the crypto market continues to evolve and gain legitimacy, it remains to be seen how regulators will adapt and establish frameworks that balance investor protections and market oversight without stifling innovation and technological progress. Meanwhile, Binance and other major players in the industry face ongoing regulatory challenges as they navigate a complex global landscape.

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