Binance Dominates Chinese Market Despite Ban
Despite China’s strict stance on cryptocurrency, Binance continues to dominate the Chinese market. In May, the exchange recorded an astonishing $90 billion worth of spot and futures trading volume from China, according to information from an internal platform at Binance known as “Mission Control.” The majority of this volume came from futures trading.
China still Binance's biggest market with $90 billion in monthly volume despite crypto ban: WSJ https://t.co/vOqNYbtkWn
— The Block (@TheBlock__) August 2, 2023
Binance’s Global Reach
Binance’s overall trading volume for spot and bitcoin futures in May surpassed a staggering $670 billion, according to The Block’s Data Dashboard. Following China, the exchange’s major markets include South Korea, Turkey, and Vietnam, as reported by the Wall Street Journal (WSJ).
The figures also shed light on the significant user base Binance maintains in China. As of May, the exchange had 5.6 million users based in China, out of which 911,650 were actively engaged. Impressively, Binance boasts a total user count of over 128 million worldwide. The WSJ reported that, as of January, about 100,000 Chinese users at Binance were classified as “politically exposed persons” (PEPs), individuals holding influential government positions or closely associated with such individuals. Traditionally, financial institutions subject PEPs to strict scrutiny to curb money laundering and illicit financial activities. However, Binance seems to have been lenient in verifying the identities of its users in China.
Binance’s China Ties
Binance’s close association with China dates back to its founding in Shanghai in July 2017. However, following China’s ban on crypto initial coin offerings (ICOs) and the subsequent blocking of Binance’s website in September 2017, the exchange found innovative ways to assist Chinese users in bypassing restrictions. The WSJ revealed that Binance directed Chinese users to visit websites with Chinese domain names before redirecting them to its main website, thus circumventing the ban. A company spokesperson told the WSJ that Binance.com is blocked in China and inaccessible to China-based users.
