- Binance reportedly facilitated trades worth $90 billion in crypto assets in a single month, despite China’s stringent ban on crypto trading and mining.
- Binance’s CEO, Changpeng Zhao, continues to maintain that the exchange ceased operations in mainland China back in 2017 during a major regulatory crackdown.
Casting Doubts on China’s Crypto Exclusion: Binance’s Bold Stance
In a whirlwind of financial defiance, Binance, the world’s leading cryptocurrency exchange, facilitated an astounding $90 billion worth of crypto trades within a single month. This revelation is even more intriguing, considering it occurred within the confines of a nation that has strictly outlawed cryptocurrency trading and mining since 2021 – China.
The Staggering Volume of Crypto Trades
Detailed reports published by the Wall Street Journal on August 2nd unveiled that despite China’s stringent crypto prohibitions, Binance sustained its operational presence, processing $90 billion in crypto-based trades within just a month. This colossal trading volume, equating to 20% of the global trading volume for the period, is even more remarkable as it excludes transactions made by a select group of heavyweight traders.
Data derived from internal figures and testimonies from Binance’s current and former employees disclosed that a substantial portion of these trades were futures contracts tied to cryptocurrencies. This is yet another intriguing facet, considering such futures trading for crypto is banned in the US.
Binance’s Official Stance: Exit or Evasion?
Binance, spearheaded by CEO Changpeng “CZ” Zhao, insists that the exchange terminated its mainland China operations in 2017 during a period of intensive regulatory repression. This affirmation seemingly contradicts recent media reports suggesting Binance still maintains a workforce in China.
In response to the WSJ report, a Binance spokesperson emphasized that
“The Binance.com website is blocked in China and is not accessible to China-based users.”
Simultaneously, Binance is facing a heightened level of scrutiny from US regulators, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The Department of Justice (DOJ) is also investigating potential violations of money laundering laws and sanctions by Binance.
As this complex narrative continues to unfold, one fact remains clear: Binance’s audacious strategy in the face of regulatory crackdowns continues to shape discussions around the efficacy and implementation of cryptocurrency bans worldwide.
