Binance: China Remains the Largest Crypto Market Despite Ban

In recent months, Binance, the world’s largest cryptocurrency exchange, has faced significant challenges. Following the lawsuit filed by the US Securities and Exchange Commission (SEC), Binance.US, in particular, has experienced a massive loss in market share. However, Binance International continues to dominate the market, especially in China, which is quite remarkable.

China: The Biggest Crypto Market for Binance

Despite a complete ban on cryptocurrency trading and mining in China since September 2021, it is reported by The Wall Street Journal that China remains the largest market for Binance. Additionally, Chinese companies are not allowed to offer crypto services. Hence, it would seem extremely difficult for the Chinese population to engage with cryptocurrencies. However, that might not be the case.

According to The Wall Street Journal, customers in China represent a staggering 20% of Binance’s global trading volume. In fact, the trading volume from China on Binance surpasses that of any Western country. The next countries on the list, in descending order, are South Korea, Turkey, Vietnam, and the British Virgin Islands in the Caribbean.

In specific numbers, China contributes to an $80.6 billion futures market and a $9.4 billion spot crypto market on Binance. In comparison, the second-ranked country, South Korea, accounts for $56.9 billion in futures volume and $1.4 billion in spot market volume. The figures for the British Virgin Islands are merely $12.8 billion and $5 billion, respectively. Clearly, Asia is leading the way.

Chinese Crypto Users Likely Utilizing VPNs

Binance is reported to have around 900,000 active users in China, which could possibly explain why news of the SEC lawsuit against Binance was broadcasted on Chinese state television. Interestingly, The Wall Street Journal also notes that Binance regularly collaborates with Chinese law enforcement agencies to combat criminal activity.

To circumnavigate China’s “Great Firewall,” which blocks access to certain websites, including crypto-related platforms like Binance, the Chinese population heavily relies on privacy-enhancing tools such as virtual private networks (VPNs). Therefore, it is suspected that a significant portion of traders from China still manage to access Binance’s services using these VPNs.

Conclusion

Despite the ban on cryptocurrency operations in China, Binance continues to dominate the crypto market in the country. The significant trading volume originating from China illustrates the high demand for cryptocurrencies among the Chinese population. By leveraging privacy tools like VPNs, Chinese users have managed to bypass the restrictions imposed by the Chinese government. As a result, Binance remains the platform of choice for many Chinese traders.

Tags: Binance, China, Exchanges, Market Share