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China Emerges as Binance’s Key Market !

Despite a ban on cryptocurrency trading in China, Binance has emerged as the biggest market for the major crypto exchange.

According to reports, China accounts for 20% of Binance’s global volume, with monthly trading volume exceeding $90 billion.

This is despite Beijing’s crackdown on digital assets over concerns about money laundering, currency outflows,

and the environmental impact of Bitcoin mining.

Binance’s trading volume in China exceeded $90 billion in May 2023, despite the country’s ban on cryptocurrency trading. This makes China Binance’s largest market, accounting for 20% of its global trade volume.

According to a Wall Street Journal report from Wednesday

The fact that Binance is still able to facilitate such large volumes of trading in China suggests that there are holes in the country’s crypto ban.

It is unclear how Binance is able to operate in China despite the ban,

but it is likely that Chinese users are finding ways to circumvent the restrictions.

According to the WSJ report, there are more than 900,000 active Binance users in China

Crypto trading was banned by the People’s Bank of China – China’s central bank –

in September 2021 over concerns related to money laundering and the possibility of evading capital controls.

Despite Binance’s website being blocked inside China,

Chinese traders are still able to access Binance.com using virtual private networks (VPNs),

a software tool used to bypass censorship and make a user appear to be in another location than he really is.

Asked by the Wall Street Journal for information about this,

a Binance representative offered few details other than pointing out that its website is unavailable in China.

“The Binance.com website is blocked in China and is not accessible to China-based users”

a Binance spokesman was quoted by the Wall Street Journal as saying.

There are more than 900,000 active Binance users in China,

and the exchange even works with Chinese law enforcement to uncover criminal activity among the users.

The WSJ called China a “crucial” market for Binance, and pointed out that maintaining its footprint in the country will be important as the regulatory crackdown on crypto in the US continues.

What are the implications of Binance’s continued operations in (PRC), despite the crypto trading ban

The continued operations of Binance in China despite the crypto trading ban have several implications:

  • It suggests that there are holes in China’s crypto ban, and that Chinese users are finding ways to circumvent the restrictions and access Binance’s services.
  • It raises questions about the effectiveness of China’s ban on cryptocurrencies, and whether it is actually achieving its intended goals of curbing money laundering, currency outflows, and the environmental impact of Bitcoin mining.
  • It highlights the challenges faced by regulators in enforcing bans on cryptocurrencies, which are decentralized and difficult to control.
  • It could lead to increased scrutiny of Binance by Chinese authorities, and potentially result in legal action against the company.
  • It could also lead to increased regulatory pressure on other crypto exchanges operating in China, as authorities seek to clamp down on the use of digital assets in the country.

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