Binance, one of the world's largest cryptocurrency exchanges, continues to thrive in the Chinese market, recording over $90 billion in spot and futures trading volume in the country in May, despite China's crypto ban.
Binance Continues to Grow in China
The exchange's total spot and Bitcoin futures trading volume reached over $670 billion in May, making China its most important market. According to the WSJ report, Binance's other leading markets after China include South Korea, Turkey and Vietnam.
Binance has 5.6 million users in China as of May, of which 911,650 are active investors.
In total, the exchange has more than 128 million users worldwide. The WSJ report revealed that nearly 100,000 Chinese users on the platform were classified as “politically exposed persons” (PEPs) as of January.
PEPs are people who hold positions of influence in government offices or have close relationships with such individuals, and traditional financial institutions often subject them to further scrutiny to prevent money laundering and illegal financial activities.
However, Binance is reportedly more lenient in verifying the identities of its users in China.
Despite its significant presence in China, Binance's website is blocked in the country and cannot be accessed by users based in China.
Despite regulatory restrictions, Binance's continued success in the Chinese market highlights the challenges authorities face in enforcing crypto bans and regulating digital asset trading.
It also highlights the crypto industry's resilience in adapting to regulatory changes and finding ways to appeal to its user base.
*Not investment advice.