Binance Denies Trading $90 Billion in China Despite Crypto Ban: Wall Street Journal

Binance Denies Trading $90 Billion in China Despite Crypto Ban

Binance, the world’s largest crypto exchange, has denied a report by the Wall Street Journal claiming that it trades $90 billion in China every month, despite the country’s ban on crypto. The exchange redirects users to Chinese domain names before rerouting them to its global exchange. Binance has stated that its website is blocked in China and is not accessible to users there. However, the Wall Street Journal reported that an internal document shows the volume of trades in China would make it Binance’s largest market, accounting for about 20% of its global trade volume. The exchange has also been under scrutiny by regulators, including the CFTC and SEC in the US.

Key Points:

Binance denies trading $90 billion in China each month despite the crypto ban.
The exchange redirects users to Chinese domain names before rerouting them to its global exchange.
Internal documents suggest that China is Binance’s largest market, contributing about 20% of its global trade volume.
Binance has faced scrutiny from regulators, including the CFTC and SEC in the US.
The exchange is also under investigation by the US Justice Department for possible money-laundering and sanctions violations.

Binance’s Unique Relationship with China and Regulatory Challenges

Binance’s founder, Changpeng Zhao, established the company in Shanghai in 2017. However, following regulatory crackdowns by the Chinese government, Binance relocated its operations to Japan and then to the Cayman Islands. The exchange has historically been lenient in carrying out Know Your Customer procedures in China, with less than half of China-based registered users undergoing checks after the 2021 crypto ban. Binance is currently facing intense scrutiny from regulators, including the CFTC and SEC in the US, with lawsuits alleging illegal operations and misleading investors. The exchange is also under investigation by the US Justice Department for possible money-laundering and sanctions violations.

Hot Take:

Binance’s denial of trading $90 billion in China despite the crypto ban raises questions about its operations and compliance with regulations. The exchange’s unique relationship with China and its founder’s origins add further complexity to its regulatory challenges. The ongoing scrutiny from regulators and investigations by the US Justice Department will likely have a significant impact on Binance’s market share and future operations.