According to The Wall Street Journal, China-based consumers were able to conduct transactions worth approximately $90 billion per month on Binance, the largest cryptocurrency exchange in the world.
Customers from China traded cryptocurrency for more than $90 billion in May 2023. Futures contracts for cryptocurrencies accounted for the majority of this volume. With 20% of the worldwide volume coming from these transactions, Binance became the biggest cryptocurrency exchange in China. Binance assisted Chinese users in getting over limitations by leading them to a number of websites with Chinese domain names before directing them to the international exchange.
China’s significance to Binance is reportedly widely addressed inside, according to current and former workers. Even though it is forbidden by the government, the exchange is collaborating closely with Chinese law enforcement to spot any possible illegal behavior among the more than 900,000 active users there.
Tightening Regulation in China
China stepped up its repression of the sector in 2021 and made all cryptocurrency-related transactions illegal. Maintaining social and political stability was the goal. At the time, Binance announced it would list all users on the site and place Chinese users’ accounts in “withdrawal only” mode, which would prevent them from trading.
An ex-employee claims that as a result of the prohibition, Binance‘s share of the overall trading volume in China decreased from 24% in the middle of the year to 17% by the end of 2021. But it started to increase once again in 2022 and stayed there.
Journalists also learned that Binance staff members assisted Chinese consumers in avoiding compliance and verification. Over 200,000 people were ultimately assisted by the platform in registering despite its own security measures.
Even for Chinese customers, the platform provided dedicated mobile applications. The program may be downloaded without a VPN thanks to the binance[.]com domain.