August 4, 2023
By Anjali Kochhar
Aug 2, 2023, Cryptocurrency exchange Binance witnessed a staggering $90 billion in monthly transactions related to cryptocurrency assets in China, despite the trading of such digital assets being outlawed in the country since 2021, according to a report by the Wall Street Journal (WSJ) on Tuesday. The data cited in the report was obtained from internal figures and interviews with current and former employees of Binance.
The transactions in China propelled the exchange to become its largest market by a considerable margin, accounting for a substantial 20% of the total volume worldwide, excluding trades conducted by a specific group of large-scale traders, the WSJ stated in its report. However, the precise month during which these transactions occurred was not disclosed.
Binance, founded in China, shifted its operations away from the mainland in 2017 following regulatory restrictions. In response to the Journal’s inquiry, the exchange did not immediately provide any comment.
Despite being blocked in China and inaccessible to users within the country, Binance’s monthly transaction figures reveal significant activity continuing within the region, leading to questions surrounding the effectiveness of measures to control cryptocurrency trading.
In addition to its troubles in China, Binance has been subjected to rigorous scrutiny from U.S. regulatory authorities, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The CFTC filed a lawsuit against the exchange, accusing it of operating an “illegal” exchange and implementing a “sham” compliance program. Meanwhile, the SEC sued Binance and its CEO Changpeng Zhao, alleging that the exchange artificially inflated its trading volumes, misappropriated customer funds, failed to block U.S. customers from its platform, and misled investors regarding its market surveillance controls.
Further compounding its legal challenges, Binance is currently under investigation by the U.S. Justice Department over potential money-laundering and sanctions violations, as reported by Reuters earlier.
Despite these controversies, Binance continues to be a significant player in the global cryptocurrency market, though its reputation and regulatory standing have come under intense scrutiny, both in China and internationally.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.