Binance Reportedly Enabled $90B Illegal Crypto Trades in China
Binance reportedly allowed customers in China to trade $90 billion in cryptocurrency assets in a month despite being located in a region where the usage of cryptocurrencies is illegal. Binance has been under fire before for maintaining its operations in China after the government there banned cryptocurrency trade and mining in 2021.
Massive Transaction Figures
Binance reportedly kept running even after China cracked down on cryptocurrency trade, as reported by the Wall Street Journal on August 2. Over $90 billion in cryptocurrency and related assets were traded on it in only one month. When China banned cryptocurrency trading and mining over two years ago, it was widely assumed that Binance would depart the country.
Moreover, twenty percent of the world’s monthly trading activity is represented by the $90 billion in crypto transactions. Large trades done by a select few large traders are not included. The WSJ article relied on data and interviews with current and former Binance employees. Futures contracts based on cryptocurrencies saw the bulk of the transactions, despite the fact that such trading is illegal in the United States.
Binance and its CEO Changpeng Zhao insist that the exchange fled mainland China in 2017 in the midst of a regulatory crackdown. Mainstream media have recently reported that Binance maintains an office and staff in China.
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The US CFTC and the SEC are conducting extensive investigations into the cryptocurrency exchange. The DOJ is looking into whether or not Binance broke anti-money-laundering rules and sanctions.