By
Steve Muchoki
May 10th, 2024
Binance’s influence is undeniable as the exchange boasts a staggering total of over 128 million users worldwide.
Binance, the world’s largest crypto exchange, has defied all expectations by maintaining its position as the dominant player in China, even in the face of a crypto ban imposed by the country in 2021.
A recent report from the Wall Street Journal reveals that Binance recorded over $90 billion in trading volume from China in May alone. These astounding results call into question the conventional assumption that regulatory bans stifle market expansion.
Binance’s sustained supremacy in China is based on its savvy use of both spot and futures trading. The data from Binance’s internal platform, aptly named “Mission Control”, highlights that a substantial portion of the $90 billion trading volume originated from futures trading.
This approach emphasizes Binance’s proactive initiatives to meet market demands while being compliant with the legal framework.
Remarkably, Binance achieved a staggering combined spot and Bitcoin futures trading volume of $670 billion in May, as reported by The Block’s Data Dashboard. This substantial figure not only showcases Binance’s remarkable market share but also emphasizes the ongoing transformation of the crypto industry into a mainstream financial powerhouse.
Another vital factor contributing to Binance’s remarkable success in China is the growing global inflation and the threat of a global banking crisis. Binance’s prominence as a reliable and innovative crypto exchange positions it as a safe haven for those seeking alternatives to traditional banking mechanisms, particularly in regions such as China.
Binance’s influence is undeniable as the exchange boasts a staggering total of over 128 million users worldwide. As of May, the exchange counted 5.6 million users based in China, with over 900,000 actively engaging with the platform.
Binance China: Bypassing Restrictions
The journey of Binance in China has been marked by strategic acumen and innovative circumvention. A previous report from Coinspeaker revealed that some Binance staff have been demonstrating how to bypass the Know Your Customer (KYC) feature to residents of mainland China.
Allegedly, residents were shown how to forge bank documents and provide false proof of physical addresses, raising questions about the integrity of the verification procedures.
Binance employees and Angels purportedly offered guidance on circumventing KYC by suggesting residents activate a Virtual Private Network (VPN) and register as Taiwanese residents, only to later switch their nationality back to mainland China.
Another intriguing facet of Binance’s China operations lies in the leniency approach to verifying its users. Approximately 100,000 Chinese users are categorized as “Politically Exposed Persons” (PEPs).
Traditional financial institutions often subject PEPs to heightened scrutiny to curb money laundering and illicit financial activities, however, Binance has allegedly been relaxed in checking the legitimacy of its users in China.
While China remains a focal point of intrigue due to its regulatory environment, Binance’s reach extends far beyond its borders. Notably, South Korea, Turkey, and Vietnam have emerged as key markets for Binance, signaling its ability to tailor its offerings to cater to various regions’ unique demands and preferences.