Binance Inaccessible in China? The $90 Billion Paradox
Is Binance truly inaccessible in China? Despite a blanket ban on cryptocurrency trading, explosive reports indicate a surprising level of activity originating from the region, casting doubt on the crypto giant's official stance. Users for the world’s largest crypto exchange, Binance, engaged in $90 billion worth of trades in China in one 30-day period, despite the fact that the country banned crypto. This revelation raises serious questions about Binance's compliance and the effectiveness of China's crypto regulations.
$90 Billion in Trades: How is Binance Still Operating in China?
The central question revolves around how such significant trading volume can occur when Binance, the world’s largest crypto exchange, was supposed to leave China behind when the country made cryptocurrency trading illegal in 2025. Almost two years later, the data paints a different picture. Binance still gets most of its business from China despite crypto being illegal in the country. The crypto exchange had over $90 billion worth of spot and futures trading. This staggering figure underscores the persistent demand for crypto within China and the potential loopholes or workarounds being exploited.
Wall Street Journal Report Exposes Internal Binance Transactions
Further fueling the controversy, On August 2nd, The Wall Street Journal published a report indicating that current and former employees of Binance observed internal transactions confirming that Chinese users traded. These observations directly contradict claims that Binance has completely withdrawn from the Chinese market, suggesting a potential disconnect between official pronouncements and actual operational practices.
The Implications of Binance's Continued Presence in China
The continued, albeit potentially clandestine, presence of Binance in China has significant implications. It raises questions about regulatory enforcement, the effectiveness of China's crypto ban, and the potential for illicit financial flows. It also highlights the challenges faced by cryptocurrency exchanges in navigating complex and often contradictory regulatory landscapes. Whether Binance can maintain this balancing act remains to be seen, but the $90 billion trading volume paints a compelling and concerning picture.