Despite the website of Binance being blocked in China, the number of Binance users in the country has conducted cryptocurrency trades worth 90 billion USD in just one month, accounting for 20% of Binance’s global trading volume. This is quite remarkable considering that cryptocurrency transactions were previously banned by the People’s Bank of China, the country’s central bank, in September 2021 due to concerns over money laundering and capital flight.
Although the Binance website is inaccessible within China, Chinese traders can still access Binance.com using a virtual private network (VPN), a software tool that allows users to bypass censorship and appear as if they are located in a different location.
When questioned about this by The Wall Street Journal, a Binance representative provided some details but confirmed that their website is indeed not available in China. However, the report reveals that over 900,000 Binance users are currently active in China, and the exchange even collaborates with Chinese law enforcement agencies to detect criminal activities among its users.
The Wall Street Journal refers to China as an “important” market for Binance, and maintaining its presence in the country is crucial, especially as regulatory crackdowns on cryptocurrencies continue in the United States.
It is worth noting that Binance was originally founded in China in 2017 by CZ, a Canadian of Chinese descent. However, the exchange moved its headquarters out of the country when the Chinese government began cracking down on the cryptocurrency industry in 2017 and 2018, although some employees are believed to still be based in China.