The world’s largest cryptocurrency exchange, Binance, has achieved an astonishing monthly trade volume of $90 billion, setting a new record. The surprising twist is that this massive volume was observed in the Chinese markets, where cryptocurrencies are deemed illegal.
Chinese Markets Emerge as Binance’s Biggest
According to reports from the Wall Street Journal (WSJ), China became Binance’s most significant market, accounting for a staggering 20% of the exchange’s global volume. Remarkably, these numbers exclude trades made by a select group of large traders.
In May alone, Binance’s total combined spot and bitcoin futures trading volume surpassed a massive $670 billion. Following China, the exchange’s other prominent markets include South Korea, Turkey, and Vietnam, as per the WSJ report.
Binance’s Presence in China Despite Restrictions
Despite facing strict regulatory hurdles, Binance had managed to garner 5.6 million users in China as of May, with approximately 911,650 of them being active users, according to data from Mission Control. Impressively, Binance boasts a total user base of over 128 million worldwide.
Interestingly, Binance’s official website, Binance.com, is blocked in China, making it inaccessible to China-based users. However, this hasn’t deterred the crypto community in the country, as they have found ways to continue trading on the platform.
Binance’s Journey from Shanghai to Global Dominance
Founded in Shanghai in July 2017, Binance quickly rose to become a dominant force in the cryptocurrency exchange landscape. However, the company faced challenges as China banned crypto initial coin offerings (ICOs) and subsequently blocked access to Binance’s website in September 2017.
The challenges didn’t end there, as in 2021, China’s central bank declared all crypto-related transactions illegal, leading to a widespread ban on cryptocurrencies within the country. Despite these restrictions, Binance’s remarkable trade volumes in the Chinese markets show the resilience of the crypto community and their determination to participate in the global crypto space.
The Implications of China’s Crypto Ban
China’s strict stance on cryptocurrencies has had significant implications for the global crypto industry. With China being one of the world’s most populous countries and a major player in the global economy, its regulatory decisions have far-reaching effects.
Binance’s ability to thrive despite these challenges showcases the dynamic nature of the crypto market, with traders and investors finding innovative ways to adapt to changing regulations.
Conclusion
Binance’s recent achievement of hitting record trade volumes in China, despite the country’s crypto ban, highlights the remarkable growth and resilience of the crypto industry. The exchange’s ability to attract millions of users and facilitate massive trade volumes demonstrates the increasing global demand for cryptocurrencies.
As the crypto landscape continues to evolve, regulatory dynamics will play a crucial role in shaping the industry’s future. Binance’s journey from Shanghai to global dominance exemplifies the determination of crypto enthusiasts to participate in the decentralized financial revolution, irrespective of regulatory challenges. The ongoing developments in the Chinese markets underscore the need for continuous dialogue between the crypto community and regulatory authorities to foster a more inclusive and secure crypto ecosystem worldwide.
