Binance explained that they even have refused to conduct business in the Asian due to China’s cryptocurrency ban.
On August 2nd, The Wall Street Journal published a report indicating that current and former employees of Binance observed internal transactions confirming that Chinese users traded around $90 billion in cryptocurrencies on the exchange for a month.
However, Binance denied the claims published by The Wall Street Journal during an interview with Cointelegraph, stating that the exchange had not allowed the platform to be used for the exchange of billions of dollars as claimed by WSJ.
Binance explained that even due to China’s cryptocurrency bans, the exchange has refused to conduct business in the Asian country. A Binance representative told Cointelegraph, “The Binance.com website is blocked in China and not accessible to Chinese users.”
Binance Faces Global Regulatory Scrutiny
Since March, Binance has been under investigation in the United States for allegedly allowing its employees to assist Chinese clients in evading KYC (Know Your Customer) controls. However, the investigation is still ongoing, and the exchange has not officially denied the accusations thus far.
Last week, Binance encountered obstacles in entering the German market due to regulatory scrutiny, leading them to “temporarily” withdraw their cryptocurrency license in the country. Apparently, the German financial regulatory authority, BaFin, had denied Binance’s application the previous month.
Furthermore, the exchange has encountered similar issues in Austria, the Netherlands, and Cyprus after losing its European banking partner, Paysafe Payment Solutions (PSFE: NYSE), responsible for enabling deposits and withdrawals in euros for Binance’s customers through bank transfers.
Additionally, recent reports have claimed that Binance continued to maintain staff and operations in China despite announcing its departure in 2017 following the initial crypto ban in the country.
In recent months, Binance has faced operational disruptions from regulators worldwide. Belgian authorities requested Binance to cease all digital currency services in the country in June. On July 26th, the exchange withdrew its crypto license application in Germany.
Binance Defies China’s Prohibitions
As reported by Coinspeaker, the cryptocurrency giant has managed to maintain its presence in China despite the country’s prohibitions, raising questions about whether governmental control can overshadow the reach of cryptocurrencies.
According to WSJ, in May, Binance handled an astonishing $670 billion through its spot trading and futures services, demonstrating its global leadership.
Although Binance has stood out as the world’s leading exchange, its leadership could be undermined at any moment, especially if the multiple reports suggesting that some of its employees known as “angels” have provided guidance to Chinese and American users to evade KYC and register as residents of other countries are proven true.
Marco is a passionate journalist with a deep addiction to cryptocurrencies and a keen interest in photography. He is fascinated by trading and market analysis. He has 5+ years of experience working with cryptocurrency projects.