• Binance users have exchanged $90 billion in crypto assets in a single month in China despite the ban on crypto trading.
• China is Binance’s largest market with 20% of global trading volume and a 900,000-strong active user base.
• To bypass Chinese regulations, dealers use a VPN combined with digital residency programs such as RNS.ID.
Binance Trading Activity in China
As per a recent Wall Street Journal report, Binance [BNB] users exchanged $90 billion in crypto assets in a single month in China, where crypto trading has been prohibited since 2021. The amount of trading activity makes China Binance’s biggest market by far, contributing for 20% of the global trading volume, according to the Journal. It boasts of a 900,000-strong active user base in the country. The world’s leading crypto exchange regards China as its largest market, followed by South Korea, Turkey, Vietnam, and the British Virgin Islands.
Binance Withdrawal from Mainland China
The exchange withdrew from mainland China in 2017 following a regulatory crackdown. Despite this worldwide regulatory crackdown amidst allegations of unlawful operations, Binance has successfully bypassed Chinese regulations by directing visitors through other websites with Chinese domain names. To circumvent geographical limitations, dealers based in China typically utilize a Virtual Private Network (VPN) in conjunction with a digital residency program such as Palau’s RNS.ID.
CNBC Report on KYC Procedures
CNBC reported in March that Binance’s customers in China utilize a variety of ways to avoid the exchange’s know-your-customer (KYC) procedures. Executives and volunteers at Binance revealed falsifying bank papers and addresses as well as manipulating the exchange’s systems as common strategies. This calls into question the efficiency of Binance’s anti-money laundering measures as well as the platform’s vulnerability to criminal operations.
Bypassing Regulations
To bypass Chinese regulations, dealers use a VPN combined with digital residency programs such as RNS.ID .This enables these traders to access services which are otherwise blocked or restricted due to geo-blocking policies imposed by Chinese authorities . These include services related to cryptocurrency exchanges like buying/selling cryptocurrencies or accessing wallets .
Conclusion
Binance’s continued presence and growing popularity among users despite being banned shows that there is still demand for cryptocurrency trading amongst investors who are willing to take risks for potential gains . This could be indicative of an increasing trend towards decentralized finance which could provide new opportunities for people who may not have access to traditional financial markets .
