According to the Wall Street Journal, Binance users engaged in cryptocurrency-related trades amounting to $90 billion in a single month within China, despite such activities being deemed illegal since 2021, News About Nigeria reports.
The report is based on information from internal sources and statements from both current and former employees of the exchange.
These transactions within China have made it Binance’s largest market, representing a significant 20% of the total global trading volume. This percentage excludes trades conducted by a specific group of very large traders. However, the report does not specify the exact month in which these transactions occurred.
Binance was initially founded in China, but it withdrew from mainland China back in 2017 following regulatory crackdowns. The Binance.com website is presently blocked in China and not accessible to users based in the country, as confirmed by a spokesperson for the exchange when questioned by Reuters about the report.
Notably, Binance has also come under the scrutiny of U.S. regulators, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The CFTC filed a lawsuit against Binance, alleging that the exchange operated an “illegal” exchange and had a non-functional compliance program.
The SEC also sued Binance and its CEO, Changpeng Zhao, accusing the platform of artificially inflating trading volumes, misusing customer funds, failing to prevent U.S. customers from using the platform, and providing misleading information about its market surveillance controls.
Additionally, the U.S. Justice Department is investigating Binance for potential money-laundering and sanctions violations, as reported by Reuters in December. These ongoing investigations have further added to the regulatory pressure faced by the exchange.
