The world’s largest cryptocurrency exchange, Binance, reportedly facilitated a staggering $90 billion in crypto asset trades in just one month. Despite operating in a market where cryptocurrency trading is officially banned. The exchange has been at the centre of scrutiny for continuing its operations in China, where crypto trading and mining have been prohibited since 2021.
According to a report by the Wall Street Journal, Binance defied China’s crypto ban and allowed its users to conduct $90 billion worth of crypto-related transactions. This figure represents a significant portion of the global trading volume. Accounting for about 20% of all crypto trades conducted in the reported month. Notably, this volume excludes trades made by a select group of major traders. Highlighting the substantial impact of Binance’s activities on the crypto market.
The majority of the trading activity on Binance was focused on futures contracts linked to cryptocurrencies. It’s worth noting that futures trading for crypto assets is banned in the United States. Making the scale of Binance’s operations even more surprising.
Is Crypto Really Banned In China?
Despite the ban and regulatory pressure, Binance and its CEO, Changpeng “CZ” Zhao, have maintained that the exchange had left mainland China back in 2017 during a regulatory crackdown. However, recent reports have raised doubts, suggesting that the exchange still maintains a workforce in the country.
The situation has drawn the attention of US regulators. Including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The US Department of Justice (DOJ) is also investigating Binance over alleged violations of money laundering laws and sanctions, with the possibility of legal action looming.
In the midst of these investigations and challenges, Binance has expanded its reach to Japan. On Tuesday, the exchange commenced crypto services in Japan after acquiring Sakura Exchange BitCoin (SEBC) last year. This move is seen as part of Binance’s efforts to expand its global presence and diversify its operations.
The crypto industry continues to face regulatory scrutiny and evolving challenges in various jurisdictions worldwide. Binance‘s ability to facilitate such substantial crypto transactions. While operating in a banned market raises questions about the effectiveness of the ban and highlights the complexities surrounding cryptocurrency regulation.