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A recent report has shown that Binance’s Largest Market is China. Binance is the world’s largest crypto exchange based on volume. According to the report, Binance has close to one million users from China. 

This report is of huge significance because China is one of the countries known for banning crypto trading and its related activities. The country has been loud about disapproving of every crypto trading activity since 2009.

Aside from China, the other countries that occupy Binance’s large markets are Vietnam, South Korea, the British Virgin Islands and Turkey. 

Why China is Binance’s Biggest Market

Binance recorded futures and spot trading worth close to $100B in May 2023. This volume was 20% of the total trade volume of the crypto market across various exchanges in that month. 

The report also studied why and how Binance keeps running in China, even with the government’s heavy crackdown on crypto exchanges. Among the numerous reasons that may exist, the report mentioned the following reasons.

  • Binance constantly collaborates with law enforcement organizations in China to spot criminal activities.
  • Chinese Binance users trade on the exchange using VPNs (Virtual Private Networks).
  • Binance has an active market that allows users to trade the Chinese Yuan and other pairs.

The Winding Relationship Between China and Crypto

In 2009, China banned using virtual currencies for purchasing physical goods and services. In 2013, Bitcoin dumped by 30% in price after China banned its banks from processing transactions involving Bitcoin.

One year later, Alibaba, a global e-commerce company located in China, stopped accepting crypto payments and banned all crypto-related transactions.

binance in china

Hence, it is no news in the cryptocurrency ecosystem that China has been against crypto activities from the beginning. The bans China placed on cryptocurrency and its regulatory uncertainties forced Binance to leave Shangai, the original place where the crypto exchange was founded in 2017. 

That same year, China banned other crypto exchanges apart from Binance and ICOs (Initial Coin Offerings) 

In 2019, China banned Bitcoin mining operations. A year later, it took stricter measures and made harsher regulations against crypto and related activities. After these regulations, it outlawed Bitcoin mining again in 2021. 

The Real Truth – The Crypto Bans are Difficult to Implement in China

Even with China’s harsh environments and cryptocurrency restrictions, the ecosystem thrives within its jurisdiction. Interestingly, some crypto experts believe that the regulators still allow cryptocurrency trading and other activities to continue even after announcing a ban. 

If the regulators are responsible for the crypto community and its progress in China despite the various bans, they do not want to eliminate it. Instead, they want to slow down the growth of the crypto economy. With these bans, futures trade from China alone on Binance monthly is up to $80B.

Finally, enforcing every ban in China has become more complex than in 2009. It looked as though every ban made the public more interested in crypto. Hence, more people in the country adopt crypto and use VPNs to access cryptocurrency exchanges.