In recent years, with the rapid development of blockchain technology and the increasing maturity of the digital currency market, cryptocurrency trading has become increasingly popular around the world. Although the Chinese government has cracked down on cryptocurrency trading and ICO (initial coin offering), it seems that this has not effectively curbed the enthusiasm of domestic investors for cryptocurrency, and the "cryptocurrency speculation trend" is still prevalent. According to the latest surveys and reports, Binance, as one of the world's largest cryptocurrency exchanges, still occupies a dominant position among Chinese cryptocurrency users.
A survey of more than 2,000 Chinese cryptocurrency users showed that Binance has more than 60% of the market share in categories such as the largest cryptocurrency holders, the highest income users, and the users with the highest participation in the initial listing of new cryptocurrencies. At the same time, 96.72% of respondents said that Binance is their most commonly used cryptocurrency exchange, and 63.15% of them store their main assets on the exchange.
Although Binance has no direct operations in mainland China after the Chinese government banned the operation of cryptocurrency exchanges in 2017, its influence among users remains strong. Binance still maintains a high market share among Chinese cryptocurrency users, with its user base and trading volume both ahead of other competitors.
This is mainly due to Binance's strong brand influence, rich trading products, secure trading platform and user-friendly services. Binance has successfully attracted a large number of users by providing innovative trading methods and products such as Binance Chain and Binance Smart Chain. At the same time, Binance meets the different needs of users by providing services such as fiat currency trading pairs and stablecoin trading. In addition, Binance also attracts and serves Chinese users through various means, such as providing Chinese customer service support and Chinese interface.
Although Binance’s business in mainland China is restricted, it has successfully circumvented regulatory restrictions by cooperating with overseas partners and providing services such as decentralized exchanges. This allows Chinese users to still access the Binance platform through various channels and conduct cryptocurrency transactions.
Some users access foreign cryptocurrency exchanges by using VPNs (virtual private networks), while others turn to over-the-counter (OTC) markets. Although these methods have certain risks, they have not stopped the enthusiasm of Chinese investors. It is reported that last year, Binance's Chinese users traded $90 billion in cryptocurrencies in one month, an amount that accounted for about 20% of the exchange's global trading volume.
Binance's success has also attracted the attention of other cryptocurrency exchanges. Some competitors have begun to imitate Binance's strategies, such as offering more trading pairs, lowering transaction fees, and improving user experience. Therefore, Binance's dominance in China is not without challenges. In addition, in this survey, OKX is the second most popular platform, with 83.53% of respondents having used the platform and 25.3% of respondents storing their assets on the platform, followed by Gate.io, accounting for 39.95% (of which 4% of respondents store their assets on the platform), and Bitget, accounting for 37.49% (of which 2.91% of respondents store their assets on the platform).
With the rise of other exchanges and the potential return of local Chinese cryptocurrency exchanges, Binance will face increasingly fierce competition. In addition, the volatility of the global cryptocurrency market and the uncertainty of the regulatory environment also pose challenges to Binance's future development. However, Binance's dominant position among Chinese cryptocurrency users still seems to be solid. Binance's success lies not only in the products and services it provides, but also in its deep understanding of user needs and its rapid response to market changes. In the future, whether Binance can continue to maintain this position will depend on whether it can continue to innovate and adapt to the changing market environment.
In summary, despite the Chinese government's strict restrictions on cryptocurrency trading, Binance still dominates among Chinese cryptocurrency users with its advantages in products, services and user experience. Binance's success story provides valuable experience for the global cryptocurrency market and also provides a competitive example for other exchanges. As the cryptocurrency market continues to develop, Binance's influence in China and around the world is expected to expand further.
