A recent report by The Wall Street Journal alleges that Binance, a major cryptocurrency exchange, facilitated crypto trading worth $90 billion in China during a single month, despite the country’s ban on such trading since 2021. The report cites internal figures and input from current and former employees of the exchange.
According to the report, China constitutes Binance’s largest market, accounting for around 20% of the exchange’s global trading volume, excluding trades from a subset of large traders. The specific month in which these transactions occurred was not specified in the report.
Binance’s history is intertwined with China, as it originated there, but the exchange withdrew from mainland China in 2017 during a regulatory crackdown. The Binance.com website is currently inaccessible to users in China due to being blocked.
Apart from the China-related allegations, Binance has also faced scrutiny from U.S. regulators, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The CFTC sued Binance over allegations of operating an “illegal” exchange and having a “sham” compliance program. The SEC sued Binance and its CEO Changpeng Zhao, accusing the exchange of artificially inflating trading volumes, misusing customer funds, misleading investors, and more.
Furthermore, Binance is reportedly under investigation by the U.S. Justice Department for potential violations related to money laundering and sanctions. The exchange’s operations and regulatory compliance have been subjects of increasing global concern and regulatory attention.
