United

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<p>The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/despite-crypto-ban-china-remains-binances-largest-market-with-a-whopping-90-billion-volume-wsj-report/">Despite Crypto Ban, China Remains Binance’s Largest Market with a Whopping $90 Billion Volume: WSJ Report</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Binance, the globe’s leading crypto exchange, continues to command a significant share of China’s crypto market. This occurs despite the country’s sweeping ban on cryptocurrency trading since 2021. Let’s delve deeper into this fascinating story of resilience in the face of regulatory adversity.</p> 
<h2 id="chinas-cryptic-crypto-appetite" data-name="chinas-cryptic-crypto-appetite" class="wp-block-heading"><strong>China’s Cryptic Crypto Appetite</strong></h2> 
<p>Contrary to China’s official stance, the country remains a hotbed for cryptocurrency trading. According to internal data viewed by The Wall Street Journal, users traded $90 billion of cryptocurrency-related assets on Binance in a single month, constituting 20% of the exchange’s global volume. This figure excludes trades made by a select group of prominent traders. Surprisingly, the exchange’s investigations team continues to collaborate with Chinese law enforcement, probing potential criminal activities among its nearly one million active users in China.</p> 
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   <p lang="en" dir="ltr">Binance did monthly transactions worth $90 bln in banned China market- WSJ <a href="https://t.co/uGBNPepI4a" rel="noopener noreferrer nofollow">https://t.co/uGBNPepI4a</a> <a href="https://t.co/tbKGWmNQ5Z" rel="noopener noreferrer nofollow">pic.twitter.com/tbKGWmNQ5Z</a></p>— Reuters (@Reuters) <a href="https://twitter.com/Reuters/status/1686614193296797696?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 2, 2023</a> 
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<h2 id="dancing-with-the-regulatory-dragon" data-name="dancing-with-the-regulatory-dragon" class="wp-block-heading"><strong>Dancing with the Regulatory Dragon</strong></h2> 
<p>Binance’s tale of clandestine operations in China isn’t the only challenge it faces. The crypto behemoth has been hit with a series of regulatory charges worldwide, including lawsuits from the U.S. Securities and Exchange Commission (SEC) and investigations from the Justice Department. The accusations range from operating illegally to misusing customer funds, all of which have led to a dramatic loss of market share in the United States.</p> 
<p>Nevertheless, the company’s robust Chinese footprint, previously undisclosed, showcases how the crypto giant has managed to maneuver on the edges in territories where it is not officially welcome.</p> 
<p>Binance’s success in China stems from a crafty strategy that involves redirecting users through different websites with Chinese domain names before rerouting them to the global exchange. This approach helps circumvent China’s stringent restrictions on accessing Binance’s platform. Although the company claims its website is blocked and inaccessible to China-based users, it appears the truth is far more mysterious.</p> 
<h2 id="tug-of-war-regulatory-crackdown-vs-market-dominance" data-name="tug-of-war-regulatory-crackdown-vs-market-dominance" class="wp-block-heading"><strong>Tug-of-War: Regulatory Crackdown Vs Market Dominance</strong></h2> 
<p>With a market share eclipsing most competitors combined, Binance’s operations in China play a crucial role as it battles a global regulatory onslaught. The ongoing scrutiny threatens its very existence, according to insiders, making its foothold in China all the more vital.</p> 
<p>Binance’s relationship with China has always been complex. Founded by Changpeng Zhao, a Chinese-born Canadian, in Shanghai in 2017, the firm had to relocate its operations to Japan after China’s initial regulatory onslaught on crypto exchanges. Despite moving abroad, the company maintained a significant workforce in China, leading to further concern about data control and security among its international branches.</p> 
<p>Zhao has previously highlighted the contradictory challenge of being portrayed as a ‘Chinese company’ while simultaneously being branded a criminal entity in China.</p> 
<h2 id="a-resilient-market" data-name="a-resilient-market" class="wp-block-heading"><strong>A Resilient Market</strong></h2> 
<p>Despite the ban and initial decline in trading volume, China’s cryptocurrency market remains robust. It stands as the fourth-largest market for crypto trading globally, according to Chainalysis, a crypto research firm.</p> 
<p>This resilience owes in part to crafty workarounds like the use of Virtual Private Networks (VPNs) that mask a user’s location, and initiatives like the Dominican digital citizenship program that Huobi, a rival exchange to Binance, offered to its Chinese users.</p> 
<h2 id="binances-fortitude-a-battle-of-grit" data-name="binances-fortitude-a-battle-of-grit" class="wp-block-heading"><strong>Binance’s Fortitude: A Battle of Grit</strong></h2> 
<p>Despite the Chinese crypto ban, Binance’s China business remains solid, and the exchange continues to identify innovative methods to maintain its market share. Its user base has seen a resurgence after an initial drop following the 2021 ban, with over $90 billion in cryptocurrencies traded in May 2023 alone, mostly in futures contracts tied to cryptocurrencies.</p>

Despite Crypto Ban, China Remains Binance’s Largest Market with a Whopping $90 Billion Volume: WSJ Report

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