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Report: Binance is still doing big business in China

By:
on Aug 2, 2023
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  • Binance has been accused of doing big business in China.
  • The company handled coins worth over $90 billion in May.
  • Binance is facing significant regulatory challenges.

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Binance, the biggest crypto exchange in the world is in the spotlight once again. This time, the company has been accused of doing a lot of business in China, where cryptocurrencies were banned two years ago.

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This report was first reported by the Wall Street Journal (WSJ), which cited internal documents. It said that China was the biggest market for the company, where it processed coins worth over $90 billion in a month. Other large markets are South Korea, Turkey, Vietnam, and the British Virgin Islands.

WSJ reported that Binance had over 900k customers in China and that the company regularly works with regulators to detect criminal activity.

The report comes at a difficult time for Binance. Like other exchanges, it is going through a crypto winter period that is characterised by low trading volume. At the same time, many regulators are looking into its operations.

In June, the Securities and Exchange Commission (SEC) launched a major lawsuit against the company. One of the allegations was that the company continued offering its solutions to American customers.

A few months earlier, Binance was sued by the Commodity Futures Trading Commission (CFTC) for offering derivatives. Further, the firm is being investigated in several European countries like the UK and France.

Further, we recently reported that Binance US was engaged in wash trading. In this, the company uses its foreign firms to manipulate volume and trades. In a recent interview, Gary Gensler of the SEC warned that many crypto exchanges were trading against their customers.

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