In China, the act of recharging RMB to Binance to exchange for USD may be suspected of money laundering and other illegal activities. The reasons are as follows:

1. Illegality of virtual currency trading platforms:

• In China, virtual currency-related business activities are illegal financial activities. Binance is a virtual currency trading platform that does not have legal operating qualifications in China. In September 2021, the People's Bank of China and 10 other departments jointly issued a notice on further preventing and dealing with the risks of virtual currency trading speculation, which clearly stipulates that all virtual currencies cannot be circulated and used as currency in the market, and virtual currency-related business activities are illegal financial activities. Therefore, participating in Binance's transactions is itself an act that violates Chinese laws.

2. The anonymity and difficulty of monitoring transactions can easily lead to money laundering:

• Virtual currency transactions have the characteristics of anonymity, rapid circulation, convertibility, and difficulty in tracing. This makes it easy for criminals to use virtual currency trading platforms to cover up the source and destination of funds and legalize illegal funds. If the act of recharging RMB to Binance to exchange for US dollars involves the transfer or laundering of illegal funds, it will constitute a money laundering crime.

3. Binance has a bad record of money laundering: Binance has been accused of serious money laundering in many countries. For example, in 2023, the U.S. Department of Justice stated that Binance Holdings Ltd. admitted to participating in suspected money laundering, unlicensed remittances and sanctions violations, and paid a fine of $4.3 billion. This shows that Binance has serious problems in anti-money laundering, and there is a high risk of money laundering when trading on such a platform.

In short, in China, the act of recharging RMB to Binance in exchange for US dollars not only violates the relevant regulations on virtual currency transactions, but may also be suspected of money laundering and other illegal and criminal activities, which will bring serious legal consequences.